BMI Looking To Restart Sale Talks
For Sale?
BMI, after scrapping plans for a multi-billion dollar sale last year following less-than-expected offers, has decided to explore potential buyers, according to REUTERS. The performing rights organization originally set up a price tag of between $2 and $3b, while privately executives hoped for bids of at least $1.5b.BMI has once again enlisted GOLDMAN SACHS as an advisor to help review strategic opportunities, according to REUTERS, “to once again explore options, including a sale.”BMI previously hired GOLDMAN SACHS GROUP “for guidance as it fields interest from potential acquirers, including private equity firms.”The company had previously announced that its not-for-profit business model, which had been in place since it was founded in 1939, was changing to a for-profit structure.That news was announced by the company in a post published to BMI’s website, which included a note sent by BMI President/CEO MIKE O’NEILL, indicating the decision was made “after a comprehensive and careful assessment on how best to position our company for the future … [the move] will open up new and important opportunities for us to invest in our business.“Simply put, growth for BMI means growth for our affiliates. And most importantly, our goal is to continue to increase our royalty distributions at an even greater rate than we have before.”He also admitted at the time the company had “begun a strategic review earlier this year to evaluate opportunities to grow our company and make the most of our evolving industry for our affiliates,”“The one thing we continually heard throughout that process reinforced what we have been thinking for some time: the need for us to invest in BMI and operate in a more commercial and forward-thinking way. Growth requires investment.“And in this new model, we can now structure, fund and operate new strategic opportunities, adopt new technologies and enhance and expand our services and products in a way that under our old model would have come at the expense of distributions.”REUTERS reports that BMI is hopeful that changing to a for-profit business “will make it a more attractive acquisition target,” though the same sources note the company may decide not to go through with a sale.”
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