We are advising Bertelsmann on the transaction

Davis Polk is advising Bertelsmann on its agreement with Great Mountain Partners (GMP) to combine their respective music businesses, BMG and Concord, to create the world’s leading independent music company. The combined company will operate under the BMG name. Bertelsmann will own approximately 67% of the combined company, while affiliates of GMP will own approximately 33% and will also receive a one-time cash payment of $1.16 billion. The transaction is expected to close in the second half of 2026, subject to customary closing conditions including regulatory approvals.

Bertelsmann is a media, services and education company with more than 75,000 employees that operates in some 50 countries around the world. It includes the entertainment group RTL Group, the trade book publisher Penguin Random House, the music company BMG, the service provider Arvato Group, Bertelsmann Marketing Services, the Bertelsmann Education Group and Bertelsmann Investments. Founded in 2008, BMG has 16 offices in 13 core markets, and represents more than three million songs and recordings, including some of the most iconic catalogs and works by leading artists and songwriters such as will.i.am, Jean-Michel Jarre, Tina Turner, Jason Aldean, Jelly Roll, Paul Simon and many more. GMP is a New Haven-Connecticut based asset manager with more than $10 billion in assets under management, founded by Alex Thomson and Jon Rotolo. GMP has backed Concord and its predecessor companies since 2006.Concord is a leading independent music company supporting more than 125,000 artists and songwriters whose works are licensed, marketed and performed worldwide. Its catalog of approximately 1.3 million songs, compositions, sound recordings, films, plays and musicals is among the most significant and culturally relevant collections of creative rights. Concord is headquartered in Nashville, Tennessee, with offices in Los Angeles, New York, London, Berlin, Melbourne and Miami.

The Davis Polk corporate team includes partner Michael Davis, counsel Ajay B. Lele and associates Claire Fischer, Lily (Zhifan) Zhou, Sophie Liao and Matt Moriarty. Partner Michael Mollerus and counsel Danielle Rapaccioli are providing tax advice. Partners Arthur J. Burke and Jürgen Schindler are providing antitrust and competition advice. Members of the Davis Polk team are based in the New York and Brussels offices.

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