It’s official: Justin Bieber has agreed to promote a career-spanning catalog to Blackstone-backed Hipgnosis Songs Capital (HSC) in a nine-figure deal.
Hipgnosis has at this time (January 24) introduced by way of a media launch that HSC has acquired “Justin Bieber’s 100% curiosity in his Publishing Copyrights (together with the Author’s Share of Efficiency), Grasp Recordings and Neighboring Rights for Bieber’s whole again catalog, comprising over 290 titles launched earlier than December 31, 2021″.
[Common Music Group continues to personal the grasp recordings of Bieber’s again catalog; it seems that Hipgnosis will now obtain Bieber’s artist royalty stream on these masters by way of Common. UMPG will proceed to manage Bieber’s publishing.]
The Wall Avenue Journal reported in December that the Hipgnosis/Bieber deal can be value round USD $200 million.
MBW understands that, previous to the Bieber deal, Hipgnosis Songs Capital (to not be confused with the UK-listed public entity, Hipgnosis Songs Fund) had spent round $300 million on earlier acquisitions. These HSC acquisitions have included catalogs/revenue streams related to artists comparable to Justin Timberlake, Nelly Furtado, Leonard Cohen, and Kenny Chesney.
Consequently: Hipgnosis Songs Capital has now splashed over half a billion {dollars} on catalog offers since being launched in This autumn 2021. (UPDATE: Sources near HSC recommend the fund has the truth is spent over $600 million on the time of writing.)
The Bieber acquisition was made on behalf of Hipgnosis Songs Capital by its funding supervisor, Hipgnosis Music Administration (HSM). (HSM can be the funding supervisor for Hipgnosis Songs Fund.)
Based on Merck Mercuriadis, founder and Chief Govt Officer of Hipgnosis Music Administration, the cope with Bieber, whose songs have been streamed over 32 billion instances on Spotify alone, “ranks among the many largest offers ever made for an artist underneath the age of 70”.
Bieber has estimated gross sales of over 150 million information worldwide so far. All of Bieber’s six official studio albums have been licensed Platinum or multi-platinum by the RIAA and 33 platinum or multi-platinum singles globally.
Bieber has three singles – Child, Sorry, and Despacito – which have earned Diamond certifications for US gross sales exceeding 10 million, and a fourth in Love Your self that’s set to quickly obtain the identical standing.
“At solely 28 years of age, he’s certainly one of a handful of defining artists of the streaming period that has revitalized your entire music trade, taking a loyal and worldwide viewers with him on a journey from teen phenomenon to culturally necessary artist.”
Merck Mercuriadis, Hipgnosis Music Administration
Merck Mercuriadis, Founder and Chief Govt Officer of Hipgnosis Music Administration, mentioned: “The impression of Justin Bieber on international tradition during the last 14 years has actually been exceptional.
“At solely 28 years of age, he’s certainly one of a handful of defining artists of the streaming period that has revitalized your entire music trade, taking a loyal and worldwide viewers with him on a journey from teen phenomenon to culturally necessary artist. This acquisition ranks among the many largest offers ever made for an artist underneath the age of 70, such is the facility of this unbelievable catalog that has virtually 82 million month-to-month listeners and over 30 billion streams on Spotify alone.
“Scooter Braun has helped him construct an impressive catalog, and it’s a pleasure to welcome Justin and his unbelievable songs and recordings to the Hipgnosis household.”
“Justin is really a once-in-a-generation artist and that’s mirrored and acknowledged by the magnitude of this deal.”
Scooter Braun, Hybe America
Scooter Braun, CEO of Hybe America and Justin Bieber’s supervisor of 15 years, mentioned: “I wish to thank Merck and his whole Hipgnosis staff and all of our companions concerned for working so laborious to make this historic deal occur.
“When Justin made the choice to make a catalog deal we shortly discovered the very best companion to protect and develop this superb legacy was Merck and Hipgnosis.
“For over a decade now Justin Bieber has entertained us and moved us with a few of the largest songs on the earth. I’m so happy with him and all these concerned over time in serving to amass this unbelievable physique of labor.
“Justin is really a once-in-a-generation artist and that’s mirrored and acknowledged by the magnitude of this deal. For 15 years I’ve been grateful to witness this journey and at this time I’m completely satisfied for all these concerned. Justin’s greatness is simply starting.”
Information of Bieber’s deal comes eight months after one other pop celebrity, Justin Timberlake, bought his track catalog to Hipgnosis Songs Capital in a deal the WSJ reported was value $100 million.
Elsewhere, in March 2022, Hipgnosis Music Administration introduced the acquisition of a career-spanning catalog created by legendary Canadian artist and composer Leonard Cohen.
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.
Blackstone-backed Hipgnosis Songs Capital (Hipgnosis Songs Capital ICAV) is 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 Music Administration, during which Blackstone is additionally an investor.
Lots of the largest catalog offers so far have certainly been achieved by so-called ‘heritage’ artists.
In December 2021, Sony Music Group acquired two units of rights from Bruce Springsteen – each recordings and music publishing – masking the whole lot of Springsteen’s catalog, in a deal value a minimum of $500 million.
Bob Dylan, bought his recorded music catalog to Sony Music Leisure in January 2022, in a deal trade sources recommend was value north of $150 million. Common Music Group acquired the publishing rights to Dylan’s songwriting catalog in one of many largest acquisitions in UMG’s historical past in December 2020, for a value doubtless sat between $300 million and $400 million.
Sting, in the meantime, bought his whole track catalog to Common Music Publishing Group (UMPG) in February 2022 for someplace across the $300 million mark.
Elsewhere within the music rights acquisition house in 2023, on Monday (January 23) Warner Music Group struck a “milestone deal” with legendary British progressive rock band YES to amass the recorded music rights and revenue streams from the band’s “full” Atlantic Information period catalog.
On the identical day, Main Wave Music introduced that it has acquired the music rights of Robby Krieger and the late Ray Manzarek of legendary US rock band, The Doorways.Music Enterprise Worldwide
