Done deal: Justin Bieber sells catalog to Hipgnosis’ Blackstone fund

Official announcement: Justin Bieber has agreed to sell his career-wide catalog to Blackstone-backed Hypnosis Songs Capital (HSC) in a nine-figure deal.

Hipgnosis announced today (January 24) through a media release that HSC has granted “Justin Bieber’s Publishing Rights (including Writer’s Share of Performance), Master Recordings, and Neighboring Rights to Bieber’s entire back catalog of over 290 titles. announced that it has acquired a 100% interest inreleased before December 31, 2021”.

of wall street journal reported in December that the Hipgnosis-Bieber deal was worth about $200 million.

MBW understands that prior to the deal with Bieber, Hipgnosis Songs Capital (not to be confused with Hipgnosis Songs Fund, a UK-listed public institution) spent approximately $300 million on previous acquisitions. . These HSC acquisitions include catalogs/income streams related to artists such as Justin Timberlake, Nelly Furtado, Leonard Cohen and Kenny Chesney.

As a result, Hipgnosis Songs Capital has now committed approximately $500 million in catalog deals since its launch in Q4 2021.

The Bieber acquisition was made by Hipgnosis Song Management (HSM), the investment manager of Hipgnosis Songs Capital. (HSM is also the investment manager for her Hipgnosis Songs Fund.)

According to Merck Mercuriadis, founder and CEO of Hipgnosis Song Management, the deal with Bieber whose songs you streamed 32 billion just on Spotify “Ranked one of the biggest deals ever for an artist under 70”.

Bieber is estimated to have sold over 150 million records worldwide to date. All six of Bieber’s official studio albums have been certified platinum or multi-platinum by the RIAA, and 33 singles have been certified platinum or multi-platinum worldwide.

Bieber has three singles. Baby, sorryWhen slowly – Over 10 million sold in the US, one quarter of which are diamond certified in the US. love yourself It is set to achieve the same status immediately.

“At only 28, he was one of the few artists to represent the streaming era that revitalized the entire music industry, leading loyal global audiences on the journey from teenage phenomenon to culturally significant artist. I took you to

Merck Mercuriadis, Hipgnosis Song Management

Merck Mercuriadis, Founder and CEO of Hipgnosis Song Management, said: “Over the past 14 years, Justin Bieber’s impact on world culture has been truly astonishing.

“At only 28, he was one of the few artists to represent the streaming era that revitalized the entire music industry, transforming a loyal global audience from a teenage phenomenon to A culturally significant artist. The acquisition ranks him one of the biggest deals ever made for an artist under the age of 70. That’s the power of this incredible catalog, which boasts nearly 82 million monthly listeners and her over 30 billion streams on Spotify alone.

“Scooter Braun has helped him put together an amazing catalog and we are honored to welcome Justin and his incredible songs and recordings to the Hypnosis family.”

scooter brown

“Justin is truly a once-in-a-generation artist and that is reflected and recognized in the size of this deal.”

Scooter Braun, Hive America

Scooter Braun, CEO of Hybe America and Justin Bieber’s manager for 15 years, said:We would like to thank Merck and his entire Hypnosis team and all of our partners for their hard work in bringing this historic transaction to life.

“When Justin decided to sign the catalog deal, we quickly realized that Merck and Hypnosis were the best partners to preserve and grow this amazing legacy.

“For over a decade, Justin Bieber has entertained and moved us with some of the most famous songs in the world. I am very proud of all the people who have been involved over the years.

“Justin is truly a once-in-a-generation artist and that is reflected and recognized in the size of this deal. For 15 years, I have been grateful to be a part of this journey. Today, I am happy with everyone involved. Justin’s greatness is just beginning. ”

News of Bieber’s deal comes eight months after another pop superstar, Justin Timberlake, sold his song catalog to Hypnosis Songs Capital. WSJMore The reported value was $100 million.

Elsewhere, in March 2022, Hipgnosis Song Management announced the acquisition of a career-wide catalog created by legendary Canadian artist and composer Leonard Cohen.

This was a landmark deal for a private company backed by Blackstone Hypnosis Songs Capital ICAV The fund was launched last year with an initial commitment of approximately $1 billion from Blackstone.

In January, before announcing the deal for Leonard Cohen’s catalog, Hipgnosis announced it had acquired an 80% stake in a royalty stream of country star Kenny Chesney’s recorded music.

Blackstone-backed Hipgnosis Songs Capital (Hipgnosis Songs Capital ICAV) is listed in the UK Hypnosis Songs Fund.

Both of these funds (Hipgnosis Songs Capital and Hipgnosis Songs Fund) are investment managed by Hipgnosis Song Management, of which Blackstone is also an investor.

Many of the biggest catalog deals to date have actually been accomplished by so-called “legacy” artists.

In December 2021, Sony Music Group acquired two sets of rights (both recording and music publishing) covering Bruce Springsteen’s entire catalog in a deal worth at least $500 million.

Bob Dylan sold his recorded music catalog to Sony Music Entertainment in January 2022. Universal Music Group acquired the publishing rights to Dylan’s songwriting catalog in December 2020, making him one of the biggest acquisitions in UMG’s history. The price was probably between his $300 million and his $400 million.

Meanwhile, Sting sold his entire song catalog to Universal Music Publishing Group (UMPG) in February 2022. $300 million mark.

In the area of ​​music rights acquisitions for 2023, on Monday (January 23rd) Warner Music Group signed a “milestone deal” with legendary British progressive rock band YES, giving the band a “complete” deal from their Atlantic Records era. acquired the rights and income stream of the recorded music of catalog.

On the same day, Primary Wave Music announced that it has acquired the music rights to Robbie Krieger and the late Ray Manzarek of the legendary American rock band The music business

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