GET TO THE GOLD
My music catalog is over 5,000 original songs. The clearances are close to $10,000.00 each. That places the catalog value at a minimum of $50,000,000.00 USD. More with the production fees, that are negotiated in up front payments and publishing rights, and royalty payments. The law automatically grants 50% split between me and the producers.
When I negotiate with production, my variable is only 5% to 10%. 60% for me, 40% for you. I own my masters and negotiate them to any publishing house/ record label or distribution arm as I see it fit. These are all ballistic, armor piercing, nuclear songs. They are all hyper-sonic.
In our music business and the music industry, there exist no better examples than Prince, Michael Jackson, and now the free for all, when it comes to catalogs being purchased left and right. The new player is Hipgnosis. Lets return to Michael's Estate, and Sony acquiring the rights to Princes 35 album; catalog lease.
Michael Jackson Estate Nearing Music-Catalog Sale Worth $800-$900 Million (EXCLUSIVE)
By Jem Aswad
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The Michael Jackson estate is in the process of selling half of its interests in the legendary singer’s music catalog in a deal in the $800 million-$900 million range, three sources confirm to Variety. While details are unclear, sources say that Sony and a possible financial partner are negotiating to acquire 50% of the estate’s interests in Jackson’s publishing, recorded-music revenues, the “MJ: The Musical” Broadway show and the upcoming biopic “Michael,” and possibly more assets.
The package would be the biggest deal to date in the still-booming music catalog market.
A financial source tells Variety that Primary Wave Music already owns a stake in Jackson’s publishing catalog, although details are unclear.
Reps for the Jackson estate, co-executors John Branca and John McClain, Sony and Primary Wave declined Variety’s multiple requests for comment.
Sony has been involved in some of the biggest previous known catalog deals: It acquired Bruce Springsteen’s publishing and recorded-music catalogs for a combined price sources said was around $600 million. Sources say the company also paid $150 million-$200 million for Bob Dylan’s rights to his recorded-music catalog, after seeing the legendary songwriter sell the rights to his publishing to Universal Music for nearly $400 million. Such blockbuster deals have become routine in recent years — the three core members of Genesis sold a catalog package to Concord for $300 million — but if the information is accurate, the Jackson deal is the biggest to date by far.
Sources would not confirm the financial partner in the deal, and it remains unclear whether one is definitely involved, but likely suspects would include Eldridge Industries, which partnered with Sony on the Springsteen catalog deal and also acquired the Killers’ pre-2020 publishing catalog, and Shamrock, which recently partnered with Universal on a $200 million-plus catalog acquisition from Dr. Dre and in 2020 acquired the rights to Taylor Swift’s first six albums from a consortium led by Scooter Braun.
Sony and its predecessor CBS were the sole home for Jackson’s recorded-music catalog for his entire solo career and the latter years of his career with the Jackson 5. The singer died in 2009 at the age of 50; the formidable entertainment interests of his estate have been handled with a firm hand by Branca, his longtime attorney, and co-executor John McClain.
Jackson’s recorded-music catalog is one of most lucrative in history — his 1982 “Thriller” album alone is one of the two biggest sellers of all time and was the first album to be certified 30-times platinum, although such figures have become muddled in the streaming age.
In 2016 Sony Corp. reached a $750 million agreement with the estate to acquire the Jackson estate’s 50% stake in their joint venture, Sony/ATV Music Publishing, which they had formed in 1995. In 2018 Sony revealed in an earnings report that as part of its $2.3 billion acquisition of EMI Music Publishing, it had acquired the Jackson estate’s 25.1% stake in that company for $287.5 million.
At the end of that years-long process, which had begun six years earlier but was not cleared by the European Union until 2018, EMI and Sony/ATV were fully owned by Sony, making it sole owner of the world’s largest music publishing company.
Major Recent Music Back Catalog Deals
Table with 6 columns and 10 rows. Currently displaying rows 1 to 10.
Acquirer
Artist
Date
Stake
Valuation
Number of Songs
Hipgnosis
Justin BieberJan ’23
100%
$200M
290
------
Universal Music Group & Shamrock Holdings
Dr. Dre
Jan ’23
Artist & writer royalties
$200M
Undisclosed
Litmus Music
Keith Urban
Dec ’22
100%
Undisclosed
----
Primary Wave
Huey Lewis and the News
Nov ’22
100%
$20M
Undisclosed
----
Primary Wave
Joey Ramone
Oct ’22
Publishing rights
$10M
Undisclosed
---
Pophouse Entertainment
Avicii
Sep ’22
75% of recordings and publishingUndisclosed
(Est. nine figures)
Undisclosed
----
Concord Music Group
Phil Collins/Genesis
Sep ’22
100% of publishing rights
$300M
Undisclosed
----
Influence Media Partners
Future
Sep ’22
Publishing catalog
2004 to 2020
Undisclosed
----
612 Reach Music Publishing
Chuck D (Public Enemy)
Sep ’22
50% copyright interest; 100% writer's share
Undisclosed
-----
300 Harbour View Equity Partners
Deryck Whibley
(Sum 41)
Aug ’22
100%
Undisclosed
----
FOR MORE DATA, VISIT
SOURCE: VIP+ ANALYSIS
NOTE: DATA AS OF FEB. 8, 2023
Please notice, how each catalog was negotiated differently. The percentages, the actual elements and the evaluations. Poppa bear, is smarter than the average bear. I am excellent in business. I love numbers and the metadata.
Hipgnosis, is the current fireball. Let's all look deeper into what, and who they actually are. They have been buying everything in sight. They are currently second, only to the top three majors. This may be who I approach first. Direct. Business to business.
Hipgnosis Songs Fund
2 languages
Tools From Wikipedia, the free encyclopedia
Industry Music publishing, IP investments Founded 2018 in London
FounderMerck Mercuriadis
HeadquartersLondon, EnglandArea
served
Worldwide
Key people
Merck Mercuriadis (founder and CEO)
Nile Rodgers (co-founder)
Recommended by LinkedIn
Andrew Sutch (non-executive chair)[1]Revenue US$168.3 million (2022)[2]Operating income US$(16.7) million (2022)[2]Net income US$(19.4) million (2022)[2]Websitehipgnosissongs.com
Hipgnosis Songs Fund is a British Guernsey-registered music IP investment and song management company founded by Merck Mercuriadis and Nile Rodgers in 2018. Focused on songs and associated musical intellectual property rights, it was founded on the premise that hit songs are long-term predictable assets unaffected by economic cycles that will increase in value as the worldwide music streaming market grows.[3] In addition to acquiring songs and songwriter catalogues, the company manages the playlist, cover, interpolation, and synchronization revenues of its IP.[4][5]
Hipgnosis Songs Fund has raised £1.052 billion to fund acquisitions since it was established in 2018.[6][7] At the close of its first full year as a publicly traded company, its catalogue contained more than 5,000 songs; of those approximately 2,000 had been #1 hits somewhere in the world, and 4,000 had reached the Top 10.[8] Five songs that are co-owned by HSF appeared in the Top 10 on the Billboard Hot 100 of the decade chart.[9] In July 2020, it was reported that the Hipgnosis music rights portfolio, consisting of approximately 13,300 songs, had been independently valued at more than £760 million.[10][11] As of January 2021, Hipgnosis owned or partially owned more than 57,000 songs.[12] By December 2021, its catalogue had grown to 65,000 songs worth $2.55 billion.[13]
Hipgnosis Songs Fund was listed on the main market of the London Stock Exchange in July 2018 and transferred to the premium segment of the main market in November 2019. It has been a constituent of the FTSE 250 Index since March 2020.[14][15]
History[edit]
2018: Founding, debut on London Stock Exchange[edit]
Hipgnosis Songs Fund was founded by Merck Mercuriadis, who has managed artists including Elton John, Iron Maiden, Morrissey, Beyoncé, and Nile Rodgers. Mercuriadis stated in a February 2019 interview: "Nile [Rodgers] and I, one day, just started riffing off of these ideas of how do we change this system, how do we change what’s going on today where the songwriter–who provides the most important component in an artist having success–is the lowest person on the totem pole?" [16] Mercuriadis believed that a rights and song management company with substantial assets could change the existing economics of publishing for songwriters, and in 2018 building capital by offering investors pure-play exposure to songs and associated musical intellectual property rights in place, HSF was formally founded.[17] The company was named after Hipgnosis, the art and design group founded by Storm Thorgerson and Aubrey Powell.[18] The Family (Music) Limited, an advisory board that included Mercuriadis, Rodgers, Starrah, The-Dream, David A. Stewart, Nick Jarjour, Bill Leibowitz, and Ian Montone was established in 2018. Rodney Jerkins joined the advisory board in July 2020.[19]
Hipgnosis Songs Fund went public in July 2018; an earlier plan to float the company in the UK had been postponed to conduct further due diligence.[20] Its prospectus stated that there was a "unique market opportunity as technology disruption is changing the way music is consumed."[21] At its July 10, 2018 launch on the British Stock Exchange, HSF raised £202m, well over its goal. Trading as SONG, it was one of two investment trust IPOs that were oversubscribed that year.[22] After it was listed the company reported that it had acquired a 75 percent interest in its first music rights catalog from musician The-Dream for £18.83 million. Among other hits, the 302-song collection included Justin Bieber's "Baby", Rihanna's "Umbrella" and Beyonce's "Single Ladies (Put a Ring on It)".[23]
By the end of 2018, Hipgnosis acquired the Poo Bear catalogue of 214 songs, including Justin Bieber's "What Do You Mean?" and the English language version of "Despacito"; a 37.5% stake in Chic co-founder Bernard Edwards' catalogue, which comprised 290 songs including "Everybody Dance", "Le Freak," "I Want Your Love" and "Good Times"; the 121-song catalogue of TMS, including "Don't Be So Hard On Yourself" for Jess Glynne, and "Wings" and "DNA" for Little Mix; and the 121-song catalogue of Tricky Stewart, who co-wrote many of The-Dream's hit songs, including "Me Against the Music" (by Britney Spears and Madonna), and Mariah Carey's "Touch My Body."[24]
2019: Acquisitions, second and third raise, listing on LSE Premium segment[edit]
Prior to a second raise of £146.5 million in April 2019, Hipgnosis acquired the 182-song catalogue of Giorgio Tuinfort, including more than 15 UK Top 10 singles with David Guetta; Itaal Shur (209 songs, including "Smooth"), the 249-song catalogue of Johnta Austin, ("We Belong Together" by Mariah Carey, "Be Without You" by Mary J Blige); 588 songs by Sean Garrett, including "Yeah", Ciara's "Goodies, and "Check on It by Beyoncé; and the 245 song catalogue of Rico Love, including ""Without You" by David Guetta.[24][25] In October 2019, the company acquired Timbaland's catalogue, which included all six albums by Missy Elliot, and the five Justin Timberlake albums that Timbaland produced.[26] The catalogue comprises 108 albums and songs with collective sales in excess of 32 million.[27] Five songs co-owned by Hipgnosis appeared in the Top 10 on Billboard's Hot 100 of the decade chart. (The Chainsmokers ft. Halsey's "Closer", "Uptown Funk" by Mark Ronson, "Shape of You" by Ed Sheeran, Maroon 5 ft. Cardi B, "Girls Like You", and "Despacito" by Luis Fonsi & Daddy Yankee ft. Justin Bieber).[28] In December 2019, Hipgnosis added the first four studio albums by Kaiser Chiefs,[29] and the songwriting catalogue of Jack Antonoff to its repertoire.[30]
Hipgnosis raised £49.9 million in August 2019, and an additional £233.7 million in October,[31] bringing its "acquisition warchest" to nearly £650 million. As of October 2019, HSF holdings included more than 6000 songs, with hits from every decade since the 1950s, valued at £1.2 billion.[7] In November 2019 the company was admitted to the London Stock Exchange Premium Segment of the Official List on the completion of four equity fundraises since its launch in June 2018.[32]
2020: Acquisition of Kobalt Capital, Hipgnosis Songs Group, FTSE 250 Index[edit]
In January 2020, former blink-182 guitarist Tom DeLonge sold his publishing rights to Hipgnosis.[33] In April 2020 the company acquired 70% of Mark Ronson's catalogue.[34][35]
On 2 July 2020, to fund new investments to build a "pipeline of catalogs with an acquisition value of over £1bn," Hipgnosis announced that it sought to raise an additional £200 million through issuing a new tranche of class C shares. On July 7, following the release of its FY2020 annual report—which disclosed that Hipgnosis had generated £65.661 million in revenue during its 2020 fiscal year—the company's market capitalisation hit an all-time high of nearly £1 billion.[36][37]
Hipgnosis exceeded its July 2020 fundraising goal of £200 million after its new share placing was oversubscribed. The company raised £236.4 million, its largest equity raise, bringing Hipgnosis' total raise to more than £862 million.[38] It subsequently acquired the catalogs of Jerkins, RedOne, and Barry Manilow,[39][40][10] bringing its portfolio to approximately 13,300 songs.[36]
In August 2020, Hipgnosis's market capitalisation exceeded £1 bn.[41] In September 2020, the company acquired the American music publisher Big Deal Music, adding 4,400 copyrights to the company's portfolio. Big Deal was renamed Hipgnosis Songs Group.[42] Later that month Hipgnosis announced that it would issue a new tranche of ordinary shares to raise £190 million, stating that the capital would be used to acquire 50 catalogues that it had identified and exclusively secured. The target of £190 million was hit in 72 hours, bringing the fund's total raise to £1,052 bn, £392m of which was raised in two months.[6]
Hipgnosis Songs Fund acquired 100% of the 162-song LA Reid catalogue in October 2020. Reid also joined the Hipgnosis advisory board.[43]
In November 2020, Hipgnosis acquired 42 catalogues from Kobalt Music Group, comprising 1,500 songwriters and 33,000 songs, for $322.9 million. The acquired catalogues had been owned by Kobalt Capital's first fund, including Nettwerk, 50 Cent, Skrillex, The B-52s, Enrique Iglesias, and Steve Winwood. Kobalt, which is Hipgnosis' main publishing administrator, continued to represent these catalogues as well as the rest of Hipgnosis.[44] Hipgnosis also bought a 50% stake in the publishing, neighbouring rights and recording catalogue of Rick James in November.[45] In December 2020, HSF reached a £1.25b market cap.[46]
2021–present: Valuation, Blackstone Group Investment[edit]
In January 2021, Jimmy Iovine sold his producer royalties to Hipgnosis, including 259 recordings and his movie production royalties for 8 Mile, which starred Eminem, and 50 Cent's Get Rich or Die Tryin'."[47] Iovine stated that proceeds generated from the purchase would fund a new high school in Los Angeles as part of the USC Iovine and Young Academy.[48] Hipgnosis also acquired the catalogue of Fleetwood Mac member Lindsey Buckingham,[49] a 50% stake in the catalogue of Neil Young,[50] all 145 of Shakira's songs,[51] and 43 songs produced by Bob Rock.[52] In March 2021, Hipgnosis acquired the catalogue of songwriter Carole Bayer Sager.[53] In May 2021, Hipgnosis acquired the song catalogue of the Red Hot Chili Peppers (for its publishing business MoeBeToBlame Music) for a reported $140-$150 million.[54] Hipgnosis also acquired the catalogue of songwriter Andrew Watt.[55] In August 2021, Hipgnosis acquired the catalogue of Fleetwood Mac member Christine McVie.[56] On 10 August 2020, Hipgnosis acquired 100% of Chris Cornell's catalog of song rights (241 songs),[57] including his band Soundgarden's catalog.[58] Hipgnosis' annual report was published in July 2021, valuing the catalogue at $2.2 billion.[59]
In October 2021 The Blackstone Group, an alternative investment management company, announced that it would partner with Mercuriadis to invest $1bn US to acquire song catalogues and music rights. It also announced that Blackstone would take an ownership stake in Hipgnosis Song Management.[60]
In May 2022, Hipgnosis acquired 100% of the Justin Timberlake catalog, including the copyright, ownership, and financial interests of the writer's and publisher's share of public performance income. The worldwide administration rights to the compositions, subject to Timberlake's deal with Universal, expiring in 2025 were also acquired.[61]
In July 2022, Hipgnosis signed an international sub-publishing deal with Peermusic. French performance rights society SACEM agreed to collect digital royalties for Hipgnosis in Europe.[62]
In January 2023, Hipgnosis Songs Management acquired Justin Bieber's song catalogue.[63]
Portfolio[edit]
The portfolio includes the following artists:[64]
These are all of the key people in this company, that I need to reach out to and connect. Who ever is chosen to represent me and my company, needs to understand these metrics. I may have a meeting with a record label. In this case. I may need to sit with Hipgnosis. I may have to reach an agreement with Live Nation. This is not your standard business practice. Only a forward thinking individual can fully grasp these new, key concepts.
Hipgnosis Touts 24.7% Gross Revenue Gain in Annual Report
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Although Hipgnosis Songs Fund was unusually quiet in the last six months of its fiscal year, the company that helped propel the value of music catalogs in recent years saw its value grow by nearly 5.5%, and picked up a 24% gain in gross revenue, according to its just-issued annual report.
The outside evaluator cited in the report, Barry Massarsky, partner at New York-based Massarsky Consulting, stakes London-based Hipgnosis’ value at $2.69 million in U.S. dollars, a gain of $140 million for the fiscal year that closed March 31. That’s despite taking a half-year off from its practically non-stop shopping spree, which over the years landed the assets of such composers and artists as Nile Rogers, Barry Manilow, the Chainsmokers, Neil Young, Shakira, Stevie Nicks and Lindsey Buckingham.
The report reveals not just a 24% gain in gross revenue, to $22.4 million, but a 9.5% improvement in the value of its portfolio to $2.7 billion, while its operative net asset value (NAV) came in at $1.8491 per share, above the projected yield of $1.751. The operative value reflects a total return of 9.2% in the second half of Hipgnosis’ fiscal year, and 14.2% over the entire year.
While its acquisition pace quieted in the second half of the year, the company still landed eight key assets during the fiscal year, including Red Hot Chili Peppers, Christine McVie of Fleetwood Mac, Rhett Akins, the Monsters & Strangerz (Stefan and Jordan Johnson), Elliot Lurie, Heart’s Ann Wilson and Kaiser Chiefs. The company cites better than expected growth from song streaming as a factor not only to its performance during the fiscal year, but names it and the recent confirmation of higher royalty rates from the U.S. Copyright Royalty Board as reasons for future optimism.
The company manages more than 65,000 songs from more than 150 catalogs, from which the annual report cites such bragging rights as 67 of the 271 songs that have registered a billion plays at Spotify, 13 of YouTube’s all-time most viewed videos, 3,854 No. 1s across global charts and 156 Grammy-winning songs.
“Over the last four years, we have acquired an incomparable portfolio of some of the most successful and culturally important songs of all time, now valued at $2.7 billion,” says founder and CEO Merck Mercuriadis, among the statements he shares in the annual report. “The unique strength of our catalog is demonstrated by the 9.9% increase in the Operative NAV to $1.8491 per share, as reported by our independent Portfolio Valuer, and a Total NAV Return of 14.2%.
“This is largely driven by our iconic songs outstripping the general market growth in streaming, particularly in the second half of 2021, providing validation for our investment strategy.”
Although Hipgnosis Songs Fund took a pause from landing catalogs, the related Hipgnosis Songs Capital, a private fund backed by investment firm Blackstone, has been on the prowl and picking up catalogs, including the Leonard Cohen estate in March and Justin Timberlake in May.
Says another statement from the report, attributed to Mercuriadis, “In October 2021, the investment adviser … was appointed to act for a second fund (Hipgnosis Songs Capital, which invests funds managed by the global alternative investment manager Blackstone). Additionally, Blackstone has taken an ownership stake in the investment adviser.
“We see this investment as a major vote of confidence for Hipgnosis Songs Fund, the asset class we have established and our investment strategy. Additionally, the investment that Blackstone has made has already enabled us to make considerable additional investment in the Investment Adviser’s most important capabilities, including data analysis, investment processes, Song Management and communication. Hipgnosis Songs Fund shareholders will benefit directly from these upgraded capabilities.”
Aside from its relationship with Blackstone, Hipgnosis Songs Fund is advised by Singer Capital Markets, J.P. Morgan Cazenove and RBC Capital Markets.
Hipgnosis Songs Fund Interview with Merck Mercuriadis
by Rory Palmer
September 30, 2021
What makes a particular song investable? Rory Palmer, editor of What Investment spoke to Merck Mercuriadis, founder of the Hipgnosis Songs Fund investment trust.
Transcript:
[Rory Palmer of What Investment] Taking an individual song, what is it and what do you look for? What are the secret ingredients of a song that makes it, not only one that you take on, but something investable?
[Merck Mercuriadis of Hipgnosis] Well, you know, first of all the data will tell you, I know immediately whether or not I love the songs, but there are two things that I’m looking for. One is, the songs have to have been extraordinarily successful in the first place. And the second is the songs have to be of great cultural importance. Those two things give you endurance, right? And one of the things that really makes songs as an asset class is that the copyright protection is actually very strong. So you’ve got rule of law protection that gives you 70 years after the death of the last co-composer. So we’ve paid an average of 15 times, just over 15 times, for our catalogue, but the average length of earnings in our catalogue is 107 years. And that 70 years after the death of the last co-composer rule of law is only worth talking about if you are going to buy something that can stand the test of time for that period, right? You know there are other companies out there that are buying catalogues that we just don’t believe will stand the test of time. But when you look at our catalogue, from Neil Young to Shakira, to Nile Rogers and Chic, to the Eurythmics, to Timberland, whether its Lindsey Buckingham and Christine McVie from Fleetwood Mac, these are extraordinarily successful songs but equally of great cultural importance.
Hipgnosis Songs Fund Ltd. (HSFL) was founded by veteran artist manager Merck Mercuriadis.
HSFL is a Guernsey registered investment company established to offer investors a pure-play exposure to songs and associated musical intellectual property rights.
The company has raised a total of over £1.05 billion (gross equity capital) through its Initial Public Offering on the London Stock Exchange on July 11, 2018, and subsequent issues in April 2019, August 2019, October 2019, July 2020 and September 2020.
In September 2019, Hipgnosis transferred its entire issued share capital to the Premium listing segment of the Official List of the FCA and to the London Stock Exchange’s Premium segment of the Main Market, and in March 2020, became a constituent of the FTSE 250 Index.
The company has acquired a number of song catalogs since its IPO in 2018. Most recently, on November 13, 2020 Hipgnosis Songs Fund acquired the catalog of funk legend Rick James, including a 50% stake in James’ publishing catalog (across both publisher and writer’s share), as well as a 50% stake of the artist’s recorded music masters. In addition, Hipgnosis acquired a 50% stake in James’ neighboring rights income, collected via SoundExchange.
On November 2, 2020 Hipgnosis confirmed that it acquired over 33,000 songs / cuts in songs from Kobalt Music Copyrights S.à.r.l, for a total consideration of $322.9 million.
Prior to that, it was announced in October 2020 that L.A Reid had sold 100% of the publishing interests and writer’s share of income in his music catalog, comprising 162 songs, to Hipgnosis Songs Fund.
On September 10 Hipgnosis announced the acquisition of Los Angeles-based Big Deal Music Group, bringing 4,400 copyrights into Hipgnosis – including cuts on hits by the likes of Shawn Mendes, Panic! At The Disco and One Direction.
The deal also saw Hipgnosis acquire Big Deal Music Group’s US-based publishing admin business, Words & Music.
On September 8, the UK-based company announced the appointment of respected music industry execs Ted Cockle and Amy Thomson.
Cockle, the former head of Universal’s biggest label in the UK – Virgin EMI (now EMI Records) – was named President of Hipgnosis Songs Fund. Joining him was Amy Thomson – formerly manager of Swedish House Mafia and DJ Snake, and a marketing advisor to Kanye West – who was named Chief Catalogue Officer at Hipgnosis.
Elsewhere, Hipgnosis has acquired stakes in song catalogs created by the likes of Giorgio Tuinfort (David Guetta), Teddy Geiger (Shawn Mendes), The-Dream (Justin Bieber, Rihanna), Poo Bear (Chris Brown, Justin Bieber), Itaal Shur (Santana), Bernard Edwards (Chic), Tricky Stewart (Rihanna, Beyoncé), TMS (Jess Glynne, Little Mix), The Chainsmokers and Benny Blanco.
Hipgnosis has also bought up rights to No.1 songs such as Yeah by Usher, Check On It by Beyoncé, We Belong Together by Mariah Carey and Be Without You by Mary J. Blige, and snapped up a music catalog from American songwriter, producer and singer Brittany Hazzard, aka Starrah.
Justin Bieber Sells Music Rights to Hipgnosis Songs for $200 Million-Plus
By Jem Aswad
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As expected, Justin Bieber has sold his music rights to Blackstone-backed Hipgnosis Songs Capital for north of $200 million, the company has announced. News of the impending deal, which had been rumored for weeks, was widely reported last month.
The deal includes Bieber’s shares of his publishing and recorded-music catalog, Bieber’s interest in his publishing copyrights (including the writer’s share of performance), master recordings and neighboring rights for his entire back catalogue, comprising over 290 titles released before December 31, 2021. Sources tell Variety that Bieber’s songs will continue to be administered by Universal Music, the singer’s longtime home. His master recordings will continue to be owned by UMG in perpetuity.
The acquisition has been made on behalf of Hipgnosis Songs Capital, a partnership between Hipgnosis Song Management and funds managed by Blackstone. Bieber was represented by Scooter Braun at Hybe America, David Bolno at NKSFB, Aaron Rosenberg and Audrey Benoualid at Myman Greenspan Fox Rosenberg Mobasser Younger & Light LLP and Michael Rhodes at Cooley.
Braun, CEO of Hybe America and Bieber’s manager of 15 years, said: “I want to thank Merck and his entire Hipgnosis team and all of our partners involved for working so hard to make this historic deal happen. When Justin made the decision to make a catalog deal, we quickly found the best partner to preserve and grow this amazing legacy was Merck and Hipgnosis. For 15 years I have been grateful to witness this journey and today I am happy for all those involved. Justin’s greatness is just beginning.”
Merck Mercuriadis, founder and CEO of Hipgnosis Song Management, said: “The impact of Justin Bieber on global culture over the last 14 years has truly been remarkable. This acquisition ranks among the biggest deals ever made for an artist under the age of 70, such is the power of this incredible catalog that has almost 82 million monthly listeners and over 30 billion streams on Spotify alone. Scooter Braun has helped him build a magnificent catalog, and it’s a pleasure to welcome Justin and his incredible songs and recordings to the Hipgnosis family.”
Hipgnosis Songs Capital was represented by William Leibowitz at William R. Leibowitz Law Group, Seth Traxler and Rory Wellever at Kirkland & Ellis LLP and Robert Fowler & Lisa Ong at HW Fisher.
The news arrives during a quiet time for the singer, just weeks after he postponed the remaining dates in his “Justice” tour until an unspecified time “next year.” The tour, which was originally scheduled to launch in 2020, has been postponed or delayed several times, initially due to the pandemic but most recently following his bout with Ramsay Hunt syndrome, a rare virus that in his case caused facial paralysis. It finally launched in March and covered most of North America, but he postponed the remaining dates early in June after announcing his difficulties with the disease.
It also comes amid a general cooling-off of the formerly red-hot catalog market, which has become less attractive as asking prices have soared and interest rates and capital gains taxes have risen.
Bieber’s catalog, while containing shares of his multiple hits over the past 15-odd years, is also less of a proven quantity than more seasoned catalogs, such as Genesis and Phil Collins, whose catalogs were sold for a reported $300 million earlier this year.
However, some companies, particularly Hipgnosis, have embraced newer catalogs. According to the Journal, the Bieber deal would be the largest music-rights acquisition for Hipgnosis to date. Earlier this year, the company acquired the song-catalog rights of Justin Timberlake, whose works are a few years older than Bieber’s, in a deal reported to be worth just over $100 million. While Bieber’s share of hits like “Sorry,” “Love Yourself” and even older tracks like “Baby” is said to be relatively small, they are still massive global hits that for many define an era. Conversely, Hipgnosis also acquired the catalog of legendary singer-songwriter Leonard Cohen, which includes many classics that are more than 50 years old.
This is the full realization, or the eureka moment I had as a child.
Master P, when ever interviewed would disclose the masters. The masters this. The masters that. I own my masters. I have to own my masters. I admired that from day one. On the surface what seemed most important was distribution through Priority, and the 85%/15% split.
Master P owns 85% of everything. Then enter Mrs. Wendy day and the reign of Cash Money Records. Same deal, but now on steroids. The main difference being the $32 Million dollar advance on future royalties. This was based on the ownership of, the actual catalogs. None of this would have been possible without it.
I get it.
I need to own my masters. I need to own my full catalog. Or, I am in the wrong business. There is no other way. I started with Prince and Michael Jackson. I was born from the ATV catalog.
ATV started with only 4,000 records, and grew to over 3,000,000. I learned from Master P, and Cash Money records. I saw the best in Roc-a-fella, Murder Inc Records, Ruff Ryders, No Limit, Death Row and Interscope Records. I was born here. This is where I come from. This independence is all I know.
You created me. This is why my music is so powerful.
"Good art never dies".
-- Michael Jackson.
Although I personally disagree, I completely understand. I face that same question on a regular basis. Why not just accept the slavery deal? Why not just laugh now, and cry later? Simple. I know my exact value and worth. I have zero to gain by just being another artist, to sell his or her art; short. I will never compromise because I don't have to.
I can buy my own Lamborghini. And I can afford my own Rolex. I don't need 12 of them. I can invest in all real estate properties that I chose. I can invest in the free and open market, and I am not limited. I can open and develop franchises in any business or industry. I can save and even build massive credit. Then aquire loans, to continue to expand on my business portfolio. On top of all of that, I can create and sell my own merchandise, products and services.
I am also free to secure all of my own endorsements. I am also able to secure strategic partnerships with any other entities, corporations etc; without the politics of a conventional record label, or their individual interests. I can license my own records in sync deals, with whomever I choose. For example to any television, cable, streaming or old fashioned radio. That's not to exclude online, through websites, search engines and the like.
I can write books, video games and films, series and documentaries. I am not limited by anything or anyone. Independence is all I know, and the only language I speak. Today is a new day. All of my art, is artistically available to produce for my portfolio, yielding dividends and massive profits for my estate. My retirement is solid.
I have to be firm, but I am also fair. This is business. My music details my life and it is my inner essence. Those records came from years of torment and sacrifice. I am strong enough to dive that deep; inside of my records. All in the hopes, to be able to inspire my audience to always know that dreams come true. I am living proof.
I never knew that the neglect of the music industry, would make me stronger than ever before. I never knew that, the failure to acknowledge my talents and skill, would push me to work a million times harder than anyone else. My work ethic comes directly from Michel Jackson and Prince. There is no other standard for me.
So. Here we are again. Right back where we started. The golden rule is simple. Keep your eyes on the gold; at all times. This is business. Ask Blackrock, or Blackstone. What more is there to say? Zero. Let's talk business. I have a hot 5,000 available for negotiations today. Universal, Warner and Sony are the last companies on my mind. Now; Live Nation. Hipgnosis. That is closer to the goal.
I already own everything. I can seek out venture capital for all of the clearances and releases, and share the profits with them. By basis points, instead of ownership. These would be considered owner financed terms, where my own catalog is collateral. For a limited amount of time. Once the catalog is on the race track, we will engage the auto pilot systems. My own autonomous system called RADARPLEX.
My own vision for my own catalog. More is coming. Each and every day my catalog grows. Lebron James knew his worth on day one like Kevin Garnett and Koby Bryant. I just happen to be the greatest of all time. A living legend. And your friendly neighborhood VENOM R1.
Thank you all. God Bless.
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1moMei Bären ist größer
Retired from Tyler Technologies
1yVenom means "poison" in the USA usually from snakes. Thanks for the warning! Just like Crypto is "Rat Poison". LinkedIn ?