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Music investor Hipgnosis to sell catalogues to bolster shares
  + stars: | 2023-09-14 | by ( ) www.reuters.com   time to read: +3 min
Shakira performs during the 2023 MTV Video Music Awards at the Prudential Center in Newark, New Jersey, U.S., September 12, 2023. The sale includes a portfolio of 29 music catalogues and a collection of non-core songs to a partnership between its investment adviser and funds advised by U.S. private equity group Blackstone (BX.N), Hipgnosis said on Thursday. Founder Merck Mercuriadis is the CEO and founder of the investment adviser, Hipgnosis Song Management (HSM), and holds a minority interest in the buyer, Hipgnosis Songs Capital. Hipgnosis Songs Fund will retain ownership of seven of its ten largest catalogues, it added. Last week, Alchemy Copyrights agreed to buy music copyright-focussed investment firm Round Hill Music Royalty Fund (RHM.L) for about $468.8 million.
Persons: Shakira, Brendan Mcdermid, Nelly, Hipgnosis, Peppers, Neil Young, Blondie, Merck Mercuriadis, HSM, Aby Jose Koilparambil, Janane Venkatraman, Elaine Hardcastle Organizations: Prudential Center, REUTERS, U.S, Blackstone, Blackstone Inc, FTSE, Royalty, Thomson Locations: Newark , New Jersey, U.S, Bengaluru
Justin Bieber has become the latest high-profile artist to sell his share of the rights to his music. The deal includes the publishing rights to a back catalogue that spans over 290 titles, including hits "Sorry," and "Despacito." “The impact of Justin Bieber on global culture over the last 14 years has truly been remarkable,” Merck Mercuriadis, founder and CEO of Hipgnosis Song Management said in a statement. Bieber joins a growing body of artists, including Bob Dylan and Bruce Springsteen, in making major deals to sell the rights to their back catalogues. In January 2022, it was revealed Dylan, 81, had sold the rights to his entire back catalogue to Sony.
Justin Bieber closed a deal with music investment and song management company Hipgnosis Songs Capital. Bieber sold the rights to all 290 songs in his repertoire for a little more than $200 million. It's the biggest deal yet for any artist in his generation, according to Hipgnosis' chief executive. On Wednesday, Justin Bieber signed over the rights to his entire song catalog to music investment and song management firm, Hipgnosis Songs Capital, according to a press release Hipgnosis sent to Insider. He released six studio albums, 290 songs, and sold more than 150 million records worldwide, according to the statement from Hipgnosis.
In the last few years, generational stars have inked nine-figure deals to hand over the rights to their catalogs. And, younger artists have taken part in the action too, with singers such as John Legend and Iggy Azalea striking deals. Now, services like Spotify and Apple Music have revolutionized the music industry. Unlike legacy companies, these new businesses don’t have a long track record managing music. The labels, he said, often have a disparate set of goals, including creating new hits, which could distract them from the singular mission of managing older music.
[1/2] Mariah Carey performs at the Global Citizen Concert in New York City, New York, U.S., September 24, 2022. REUTERS/Caitlin OchsDec 8 (Reuters) - Pop stars Mariah Carey and Michael Bublé's popular Christmas songs are bolstering Hipgnosis Songs Fund (SONG.L) in the run up to the holidays, as the London-listed music catalogues investor continues to capitalise on the boom in music streaming. "In the wider music market, people continue to listen to and pay for music irrespective of today's cost of living challenges," Mercuriadis said on Thursday. Hipgnosis said underlying net revenue grew 5.8% year-on-year to $65.1 million in the six months to September. Reporting by Pushkala Aripaka and Yadarisa Shabong in Bengaluru; Editing by Krishna Chandra EluriOur Standards: The Thomson Reuters Trust Principles.
Hipgnosis owns the rights to songs written by artists such as Shakira, Lindsey Buckingham and the Red Hot Chili Peppers. Investors are demanding a change of tune at Hipgnosis Songs Fund Ltd., the London-listed investment vehicle that owns the rights to tens of thousands of songs written by artists such as Shakira, Lindsey Buckingham and the Red Hot Chili Peppers. Hipgnosis was founded by Merck Mercuriadis , a former pop-star manager who has called catalog copyrights recession-proof, and better than investing in oil or gold. Hit songs can yield decades of payments for their owners, as they are streamed, played on the radio, performed live or featured in advertisements.
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