Acquisitions Second And Third Raise Listing On Lse Premium Segment
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 ” rel=”nofollow”> Smooth”), the 249-song catalogue of Johnta Austin, 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. 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. The catalogue comprises 108 albums and songs with collective sales in excess of 32 million. Five songs co-owned by Hipgnosis appeared in the Top 10 on Billboard’s Hot 100 of the decade chart. . In December 2019, Hipgnosis added the first four studio albums by Kaiser Chiefs, and the songwriting catalogue of Jack Antonoff to its repertoire.
Hipgnosis raised £49.9 million in August 2019, and an additional £233.7 million in October, bringing its “acquisition warchest” to nearly £650 million. As of October 2019, Hipgnosis Songs Fund holdings included more than 6000 songs, with hits from every decade since the 1950s, valued at £1.2 billion. 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.
Song Fund Leaps As Hipgnosis Wins $1bn Blackstone Backing
Update: Comment from Liberum and Stifel analysts added.
Shares in the Hipgnosis Songs fund have jumped over 5% after fund manager Merck Mercuriadis sealed a $1bn partnership with Blackstone, the worlds largest alternative assets manager, that puts its nascent asset class of music royalties on the map and boosts its firepower for bigger deals.
Hipgnosis Songs gained 6p or 5.8% to 126p yesterday as New York-listed Blackstone, which runs $684bn in private equity, real estate, debt and other non-public investments, agreed to buy a stake in Mercuriadis Hipgnosis Song Management . Previously known as The Family Ltd, it launched the popular Hipgnosis Songs fund three years ago.
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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’.” 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. Hipgnosis also acquired the catalogue of Fleetwood Mac member Lindsey Buckingham, a 50% stake in the catalogue of Neil Young, all 145 of Shakira‘s songs, and 43 songs produced by Bob Rock. In March 2021, Hipgnosis acquired the catalogue of songwriter Carole Bayer Sager. In May 2021, Hipgnosis acquired the song catalogue of the Red Hot Chili Peppers for a reported $140-$150 million. Hipgnosis also acquired the catalogue of songwriter Andrew Watt. In August 2021, Hipgnosis acquired the catalogue of Fleetwood Mac member Christine McVie. On 10 August 2020, Hipgnosis acquired 100% of Chris Cornell‘s catalog of song rights , including his band Soundgarden‘s catalog.Hipgnosis’ annual report was published in July 2021, valuing the catalogue at $2.2 billion.
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.
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Justin Timberlake Sells The Rights To His Song Catalog In $100 Million Deal
— Justin Timberlake sold the rights to his song catalog to Blackstone Inc.-backed Hipgnosis Song Management, Dow Jones reported, citing fund executives. Most Read from BloombergUkraine Latest: US Slams Putins Food-for-Sanctions Relief PlanTop Gun: Maverick’s F-18 Flights Cost New Tom Cruise Film $11,374 an HourRare Ship-to-Ship Transfers Keep Oil Moving From Russia to ChinaStocks Buoyed by Retail Earnings in Risk-On Day: Markets WrapThe deal was valued at just above $100 million, D
The SexyBack and Cry Me a River singer reaches a music-rights deal valued at $100 million.
Investors in Hipgnosis Songs Fund, a trust that owns the rights to popular songs, will have noticed that share price performance has been a little off-key in recent times.
As the live music industry began piecing together its pandemic recovery, Nile Rodgers extended a special invitation to MPs.
Hipgnosis Becomes An Investment Trust
- 01 April 2021
- James Carthew
Hipgnosis becomes an investment trust The board of Hipgnosis Songs Fund Limited has announced that, as noted in the prospectus dated 21 January 2021, the company applied to HMRC for approval as an investment trust company and that such approval has been granted. Accordingly, the companys conversion to an investment trust company will take effect from today. The company will be treated as being resident in the UK for tax purposes from such date. With effect from this change, the company will cease to be a Guernsey tax exempt vehicle under The Income Tax Ordinance, 1989, as amended.
The Company applied to become an investment trust company to mitigate the recently increased scope of Guernseys economic substance rules, which now apply to Guernsey entities that are self-managed collective investment schemes.
In respect of each accounting period for which the company is approved by HMRC as an investment trust, the company will be exempt from UK taxation on its chargeable gains. The company will, however, be liable to UK corporation tax on its income in the normal way. The company should, in practice, be exempt from UK corporation tax on dividend income received, provided that such dividends fall within one of the exempt classes in Part 9A of the Corporation Tax Act 2009.
SONG : Hipgnosis becomes an investment trust
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Hipgnosis Song Management has firmly established songs as an asset class. This new partnership with Blackstone will deliver financial strength to invest in proven songs as well as grow our song management team and bring additional sophistication to HSM, enabling us to create greater value to our stakeholders including our songwriters and shareholders in Song, said Mercuriadis, former manager of Elton John, Guns N Roses and Beyonce.
Given the strength of our pipeline, we see the initial commitment as just the start of a long-term partnership between Blackstone and Hipgnosis that will also include co-investment with Song, he added.
Andrew Sutch, chairman of Song said, Our investment adviser, Hipgnosis Song Managements, new partnership with Blackstone highlights how successfully Merck has established songs and music rights as an asset class since founding and listing Song three years ago. This new partnership will provide new co-investment opportunities for SONG, and we expect that continued investment in Hipgnosis Song Management will enhance returns for our investors.
The business of music rights has heated up during the past year. Among moves, Apollo Global Management
Blackstone Takes Stake In Company Behind Hipgnosis Songs Fund
Blackstone and Hipgnosis Song Management have announced a partnership that will see the creation of a $1bn fund.
Blackstone is taking an ownership stake in the group behind the popular Hipgnosis Songs Fund and will be making a $1bn initial commitment to a new unlisted fund.
The new strategy, launched as part of a partnership with SONGs investment adviser Hipgnosis Song Management , will acquire music rights and manage catalogues. The initial capital is seen as just the beginning of the newly announced partnership, which is expected to support the expansion of HSMs infrastructure and business functions.
SONG, which is the largest UK-listed investor in music catalogues, will have the opportunity to co-invest in future catalogue acquisitions alongside the new BlackstoneHSM partnership.
Merck Mercuriadis , the chief executive of HSM, said: Given the strength of our pipeline, we see the initial commitment as just the start of a long-term partnership between Blackstone and Hipgnosis that will also include co-investment with SONG.
The partnership is backed by Blackstones Tactical Opportunities strategy, which has $32bn in assets under management and makes investments that the firms traditional investment strategies cannot.
Qasim Abbas, senior managing director of Tactical Opportunities, said: This partnership underscores the long-term, sustainable value we see in creative content across the wider entertainment industry, building on Mercks vision and dynamism.
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Foreign And Regional Exchanges
After the war and facing a booming world economy, foreign lending to countries such as Brazil, Peru and Chile was a growing market. Notably, the Foreign Market at the Exchange allowed for merchants and traders to participate, and the Royal Exchange hosted all transactions where foreign parties were involved. The constant increase in overseas business eventually meant that dealing in foreign securities had to be allowed within all of the Exchange’s premises.
Just as London enjoyed growth through international trade, the rest of Great Britain also benefited from the economic boom. Two other cities, in particular, showed great business development: Liverpool and Manchester. Consequently, in 1836 both the and Liverpool stock exchanges were opened. Some stock prices sometimes rose by 10%, 20% or even 30% in a week. These were times when stockbroking was considered a real business profession, and such attracted many entrepreneurs. Nevertheless, with booms came busts, and in 1835 the “Spanish panic” hit the markets, followed by a second one two years later.
Why Do Musicians Sell
Technically, singers and songwriters should worry about undersellingmuch like Beach Boys did when one of the ban members fathers sold the groups songwriting catalog in 1969 for a paltry $700,000but the draw is big. Firms like Hipgnosis are paying 10 to 20 times what a given catalog earns annually. Often, artists perceive the deal amount is peak value.
Universal Music Publishing bought Bob Dylans entire back catalog of over 600 songs for upwards of $300 million, and Stevie Nicks sold her songs and other intellectual property to Primary Wavethe company that also holds some of Princes catalogfor $100 million. The Killers, Tina Turner, Neil Young, Journey, Fleetwood Mac, Mariah Carey, Shakira, and others have sold off either all or parts of their catalogs. Are catalogs as valuable as Michael Jacksons or the Beatles next?
Often, though, its a matter of compulsion, not choice. With streaming services paying a pittance and the pandemic bringing the industry to its knees by shelving all tours and concerts, many have seen little other alternative to selling.
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Hipgnosis Song Management Buys Song Catalogue Of Justin Timberlake
Writer, Alliance NewsThursday, May 26, 2022 – 15:05
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Hipgnosis Song Management Ltd said Thursday it has bought the song catalogue of singer, songwriter and record producer Justin Timberlake.
No financial details were provided by Hipgnosis. It said it acquired 100% of the copyright, ownership and financial interests of the writer and publisher’s share of public performance income. Also included are worldwide administration rights to the compositions, starting after 2025.
Timberlake rose to fame in 1995 as a member of NSync and went on to a solo music career, working with the likes of producers such as Pharrell Williams and Timbaland. As an actor, he appeared in ‘The Social Network’ and other films.
The Memphis, Tennessee native has released five solo studio albums to date: ‘Justified’, ‘FutureSex/LoveSounds’, ‘The 20/20 Experience’, ‘The 20/20 Experience – 2 of 2’ and ‘Man of the Woods’.
The purchase was made on behalf of Hipgnosis Songs Capital, the partnership with funds managed by US private equity firm Blackstone Inc for which Hipgnosis Song Management is the investment advisor.
Hipgnosis Song Management also is the investment advisor for FTSE 250-listed Hipgnosis Songs Fund Ltd
Blackstone Hipgnosis Partner To Invest $1 Billion Into Music
11:39 AM on Tuesday, October 12, 2021
– Private equity firm Blackstone Inc said on Tuesday it would employ $1 billion in partnership with Hipgnosis Songs Management to buy music rights, record songs and manage catalogues, at a time when online streaming has gained popularity.
As part of the partnership, Blackstone will take an ownership stake in Hipgnosis Song Management, an adviser to the London-listed investor of music catalogues Hipgnosis Songs Fund, which will also benefit from the investment in the form of rights to co-invest in future acquisitions.
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The Basic Idea Is Great
The Hipgnosis Songs Fund Company idea, the underlying economic story, is great. It all makes entire sense, and as a logical construct, there’s no problem at all with it.
That story is that songwriters gain a small payment every time one of their songs is used. That it’s streamed, played on the radio, used in an ad, played live at a gig, the sheet music is sold or even a CD containing it – so old fashioned – is sold. The amount isn’t much, perhaps 3% of the price of a CD, for example, £100 for a play on a major UK radio station, some fractions of a penny for a single stream. Further, there might be several writers on a song, and there’s an even split between them .
These rights and payments last for 70 years after the songwriter’s death in near all territories now. So, we’ve a long-lasting stream of payments. We’ve also a certain number of people who might like to turn that annuity-like payment to their grandchildren into cash now to be spent now. OK, we know how to do that. This is the sort of financial engineering that is entirely simple to perform.
My worry is that, in the face of market competition, Hipgnosis is paying either a very full, or even too high, price for the rights it is purchasing. The worry is large enough for me to be neutral on the stock even as I admire that underlying economic structure.
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Hipgnosis Forecasts Higher Streaming Earnings After Strong Year
The company, which earns royalties every time a song it owns is streamed, said annual pretax profit rose 7% to $44.5 million and net asset value jumped 11.3% to $1.68 per share. “Going forward this accelerated streaming will be enhanced as revenues from TikTok, Peloton, Triller, Roblox, and other rapidly emerging digital platforms start to be paid through,” Chief Executive Officer Merck Mercuriadis said. Hipgnosis raised its annual dividend target by 5% to 5.25 pence per a share and said its portfolio of 138 catalogues worth about $2 billion saw a 10.4% jump in like-for-like valuation during the year ended March.
Acquisition Of Kobalt Capital Hipgnosis Songs Group Ftse 250 Index
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 reportwhich disclosed that Hipgnosis had generated £65.661 million in revenue during its 2020 fiscal yearthe company’s hit an all-time high of nearly £1 billion.
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.It subsequently acquired the catalogs of Jerkins, RedOne, and Barry Manilow, bringing its portfolio to approximately 13,300 songs.
Hipgnosis Songs Fund acquired 100% of the 162-song LA Reid catalogue in October 2020. Reid also joined the Hipgnosis advisory board.
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Blackstone To Invest $1 Billion In Music With Hipgnosis As Adviser
-0.30% said Tuesday it’ll team up with Hipgnosis Song Management Ltd. to invest $1 billion to acquire music rights and manage catalogues. The private equity firm will also acquire an undisclosed stake in Hipgnosis Song Management, as part of the deal. Formerly called The Family Ltd, Hipgnosis Song Management advises on music assets and is investment adviser to Hipgnosis Songs Fund Ltd., the largest U.K.-listed investor in music catalogs and royalties with gross assets of about $2.2 billion. Hipgnosis Song Management CEO Merck Mercuriadis said the alliance with Blackstone reflects the status of established songs as an asset class. “This partnership underscores the long term, sustainable value we see in creative content across the wider entertainment industry,” said Qasim Abbas, senior managing director, Blackstone Tactical Opportunities.
Investing During The Apocalypse: A Guide For Dummies
Investing in this era the era into which were moving poses unique challenges. It was hard enough in the past, even in the age of set it and forget it retirement savings plans based on mutual funds and index funds . Many of us calculated a split between stocks and bonds in our balanced portfolios shifting from, say, a 60/40 stock/bond split favouring growth stocks when we were young to a 50/50 split with more dividend-paying blue chips, and then 40/60 in our retirement years when security and income is important.
Klaus Schwab and his friends over at the World Economic Forum, and the Rockefeller-inspired United Nations are exploiting this 100 per cent predictable collapse of the entire economic system and instead of issuing the standard debt jubilee and a new currency, the one per cent of the one per cent has exploited a biological crisis to restructure the global economy in favour of the corporations they now control via just three or four companies , at the expense of small and medium size businesses. Were watching Wall Street takeover Main Street, which is why you could buy flowers at Walmart during the pandemic, and not at Marys Flowers around the corner. Mary is now standing in a bread line, along with all those healthcare workers who refused the shot, after they saw what it did to people.
No they are not.
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