Justin Bieber is reportedly nearing a deal to promote his music rights to Blackstone-backed Hipgnosis Songs Capital.
That’s in keeping with the Wall Road Journal, which citing folks accustomed to the matter, says that the deal is valued at round $200 million and contains his curiosity in each his publishing and recorded music catalogs.
Bieber has launched six albums, the newest of which was Justice, through Def Jam / Common Music in March 2021.
Citing a supply, the WSJ stories that the deal ‘can be the biggest music-rights acquisition for Hipgnosis up to now.’
Information of Bieber’s reported deal comes seven months after one other pop celebrity Justin Timberlake offered his tune catalog to Hipgnosis in a deal the WSJ stories was price $100 million
That acquisition was made by Hipgnosis Tune Administration on behalf of Blackstone-backed Hipgnosis Songs Capital (Hipgnosis Songs Capital ICAV) – a separate entity to the UK-listed Hipgnosis Songs Fund.
Each of these funds (Hipgnosis Songs Capital and Hipgnosis Songs Fund) have their investments managed by Hipgnosis Tune Administration, through which Blackstone is additionally an investor.
In March, Hipgnosis Tune Administration introduced the acquisition of a career-spanning catalog created by legendary Canadian artist and composer Leonard Cohen.
That marked a landmark deal for the personal, Blackstone-backed Hipgnosis Songs Capital ICAV fund, which launched final yr with an preliminary dedication from Blackstone of round $1 billion.
Previous to the announcement of its deal for the Leonard Cohen catalog, in January, Hipgnosis introduced it had acquired an 80% stake within the recorded music royalty stream of nation star Kenny Chesney.
The WSJ notes that Bieber’s songs ‘are thought-about younger within the music copyright market, which has exploded totally on the again of older artists cashing in on their life’s work’.
This yr has seen numerous big-money music rights offers with such artists.
In September for instance, Harmony acquired the publishing and recorded music catalogs of Tony Banks, Phil Collins and Mike Rutherford, in addition to the publishing and recorded music catalog from their years within the band Genesis in a deal The Wall Road Journal reported to be ‘valued at over $300 million’.
In February, legendary artist and songwriter Sting offered his complete tune catalog to Common Music Publishing Group (UMPG). One knowledgeable business supply informed MBW on the time that the ultimate acquisition payment reached north of $300 million.
Though exercise within the M&A market was slower in 2022 than it was final yr when no less than $5 billion was spent on music copyrights, these offers provide proof that the rights acquisition house hasn’t come to a standstill.
At UK-listed Hipgnosis Songs Fund’s Capital Markets Day on the Maxwell Library in Savoy Place, London on December 8, Merck Mercuridadis, CEO & founding father of the Hipgnosis group of firms, famous that “very important checks” are nonetheless being written in music’s M&A world.
At HSF’s Capital Markets Day, Mercuriadis pointed to a Genesis and Phil Collins catalog not too long ago being offered to Harmony for a nine-figure sum, in addition to Main Wave placing a $2 billion cope with Brookfield – $700 million of which was instantly deployed to purchase present Main Wave-managed belongings.
Continued Mercuriadis: “However a number of the those that have come alongside within the final couple of years which have competed towards us are on the market [today] writing very important cheques.
“I can’t touch upon the person catalogs. However what I can inform you is that we’re seeing multiples being paid [in 2022] which are considerably above the place [Hipgnosis Songs Fund’s] NAV is. I’m not speaking about the place our share value is, however the place our NAV is.”Music Enterprise Worldwide