Hipgnosis
Apple Music’s Price Hike Boosts Music Stocks
Universal Music Group, Hipgnosis Songs Fund and other music stocks got a much-needed boost on Tuesday (Oct. 25) following news of Apple Music’s price hike, as investors bet it would trigger a wave of streaming subscription cost increases. Universal Music Group’s stock closed 11.6% higher, Hipgnosis Songs Fund Ltd ended up 7.8% and Korean music companies SM Entertainment and HYBE finished the trading day 4.8% and 4.4% higher, respectfully, on Tuesday. On Monday, Apple announced that it was raising the standard U.S. and U.K. individual plan price to $10.99 from $9.99. This 10% price hike — Apple’s first — comes amid high inflation and a darkening economic environment in many global markets. If Apple can raise prices at a time like this, that is a sign the music industry can charge more ...
Justin Timberlake Sells Song Catalog to Hipgnosis
Justin Timberlake is the latest artist to sell off his songs. The pop-star has sold his full catalog to Hipgnosis Song Management, the company announced Thursday (May 26). That includes Hot 100 chart-toppers “Sexyback,” “What Goes Around… Comes Around,” “My Love” and “Can’t Stop the Feeling.” Along with Timberlake’s share of ownership over his already classic song catalog, Hipgnosis now owns the multi-hyphenate talent’s entire writer and publisher’s share of public performance income (Timberlake is signed to ASCAP) and will handle worldwide administration of the compositions, subject to the remaining term of his Universal Music agreement, which expires in 2025. From Memphis, Tennessee, Timberlake has been one of the most recognizable voices in music since his time as a member of the popula...
Hipgnosis Buys Stake in Kenny Chesney Recording Royalties
Hipgnosis Song Management has acquired 80% of country superstar Kenny Chesney’s recorded music royalties. The deal is the first acquisition made by Hipgnosis since its new $1 billion partnership with Blackstone, announced in October, to acquire music rights and manage catalogs and is also Hipgnosis’s first deal with a country superstar. The pact covers Chesney’s recorded music royalties over a 23-year period, from 1994’s In My Wildest Dreams, his debut on Capricorn Records, through 2017’s Live in No Shoes Nation. Chesney recorded for Sony Music Nashville imprints from 1995 to 2017. The deal also includes future greatest hits, live and acoustic albums. Chesney switched to Warner Music Nashville in 2018 and the deal does not include any of his recorded music royalties for 2018’s Songs for th...
Inside Hipgnosis Songs’ Mid-Year Report
Hipgnosis Songs Funds improved its gross revenue for the six months ended Sept. 30 by 35% year-on-year to $85.3 million, primarily due to the revenue from eight catalogs with 1,315 songs acquired in the previous six months, the company announced Thursday (Dec. 16) in its bi-annual report to investors. Net revenue—gross revenue minus royalties paid to songwriters under contract and administered catalogs—grew 31% $74.1 million during the same period. Since its launch in 2017, Hipgnosis has built a catalog of over 65,000 songs with a net asset value of $1.63 billion as of Sept. 30, up from $1.46 billion on March 31. (NAV is the acquisition costs less amortization.) An alternative measure, “operative” NAV, which adds to NAV the increase in the catalog’s fair value...
Hipgnosis Raises $215 Million With Stock Offering, Exceeding Target
“I am once again delighted with the support from both our existing and new shareholders with an oversubscribed raise of over $215 million, £156 million,” said Hipgnosis founder Merck Mercuriadis in a statement. “We will deploy this immediately into our pipeline of songs and I am incredibly appreciative of the incredible songwriters who have entrusted us with their iconic works. We will now have a portfolio of almost $2.5 billion of extraordinarily successful and culturally important songs, which offers a massive opportunity for us to add value with our Song Management which manages these songs with bandwidth and responsibility.” As the company announced last month, Hipgnosis expects to use the proceeds from the placing to acquire catalogs already lined up by The Family (Music) Limite...
Red Hot Chili Peppers Selling Song Catalog
The band members — Anthony Kiedis, Flea, John Frusciante and Chad Smith — collectively write many of their songs, so it appears that a majority of them would have needed to agree to sell their shares of the rights to make this deal happen. According to BMI, the Red Hot Chili Peppers song catalog is administered by Moebetoblame Music, under the guidance of lawyer Eric Greenspan, managing partner of the law firm Myman, Greenspan, Fox, Rosenberg Mobasser, Younger & Light LLP. Sources say Greenspan shopped the deal for the band. The Red Hot Chili Peppers song catalog generates $5 million to $6 million in net publishers’ share (usually known as gross profit — although in this case its likely to include all revenue from the catalog), sources say, and it traded at a ab...
Hipgnosis Buys L.A. Reid’s Music Catalog
“It’s a great pleasure to welcome L.A. Reid and his incredible set of songs to the Hipgnosis family.” Financial terms of the deal were not disclosed. “I can’t imagine a better home for my lifetime of music and songs than Hipgnosis,” notes Reid. “Merck and his dream team truly value artists and their creative vision, and I couldn’t be more thrilled to partner with them for this exciting new chapter.” A giant of the U.S. record industry, Reid’s songwriting and production successes include Boyz II Men’s two-time Grammy winning smash “End of the Road,” plus hits with Whitney Houston, Bobby Brown and many more. Reid’s songwriting and producing credits include The Whispers’ “Rock Steady,” Sheena Easton’s “The Lover In Me,” Karyn W...
Hipgnosis Songs Buys Big Deal Music
Merck Mercuriadis‘ Hipgnosis Songs has acquired independent publisher Big Deal Music, Billboard has learned. A formal announcement is expected as soon as Thursday. Under the deal, Big Deal will keep its Los Angeles-area office and staff, rebrand under the Hipgnosis banner and operate as Hipgnosis’ full-service U.S. office, a source familiar with the situation tells Billboard. Big Deal’s catalog includes songwriters Teddy Geiger (Shawn Mendes, Niall Horan), Kamasi Washington, Gary Numan, Ross Golan (Selena Gomez, Ariana Grande), and Sleater-Kinney, among others, as well as joint venture deals with Ricky Reed (Lizzo, Jason Derulo) and Diplo‘s Mad Decent. The company was founded by publishing vet Kenny MacPherson, whose resume includes founding Redhead Music Publishing...
Publishing Briefs: Rodney Jerkins Puts Hipgnosis Under His Spell, Primary Wave Acquires Stake in Devo
Hipgnosis Songs Fund Limited has acquired the 982-song music catalog of four-time Grammy winner Rodney “Darkchild” Jerkins, who under the terms of the deal will also join Hipgnosis’ Investment Adviser’s Advisory Board. The agreement includes 100% of Jerkins’ writer’s share of income for his early works and 100% of his publishing interest and writer’s share of income for his later works. Jerkins’ long list of hits includes tracks for Mary J. Blige (“I Can’t Love You”), Brandy (“The Boy Is Mine”), Whiney Houston (“It’s Not Right But It’s Okay”), Destiny’s Child (“Say My Name”), Beyoncé (“Déjà Vu”), Spice Girls (“Holler”/”Let Love Lead the Way”), Michael Jackson (“You Rock My World”), Sam Smith (“Stay With Me”), Lady Gaga (“Telephone” feat. Beyoncé), Jennifer Lopez (“If You Had My Love”), Jus...
