Hipgnosis is striking again, reportedly in negotiations with Justin Bieber for the acquisition of his back catalog
According to sources cited by the Wall Street Journal, pop star Justin Bieber is negotiating a deal with Blackstone-owned Hipgnosis Songs Capital to sell his music rights for an estimated $200 million.
The deal includes Bieber's interests in his publishing and recorded music catalogs, covering six albums, including his most recent release, Justice, via Def Jam/Universal Music. If completed, the it will be the most significant music rights acquisition for Hipgnosis to date.
This news follows Justin Timberlake's sale of his song catalog to Hipgnosis just seven months prior, in a deal reportedly worth $100 million. The acquisition was made by Hipgnosis Song Management, a separate entity from the UK-listed Hipgnosis Songs Fund, on behalf of Blackstone-backed Hipgnosis Songs Capital (Hipgnosis Songs Capital ICAV). Both of these funds have their investments managed by Hipgnosis Song Management.
Hipgnosis Eats Up Music Rights
In March of this year, Hipgnosis Song Management announced the acquisition of a catalog created by Leonard Cohen, marking a landmark deal for the private, Blackstone-backed Hipgnosis Songs Capital ICAV fund, which launched in 2021, with an initial commitment of approximately $1 billion from Blackstone. The size of the music rights fund has likely grown significantly since its inception due to these and other acquisitions.
Hipgnosis - Quick Brief
Hipgnosis Songs operates several funds, including the Hipgnosis Songs Fund, which is listed on the London Stock Exchange, and the private Blackstone-backed Hipgnosis Songs Capital ICAV fund. Both of these funds have their investments managed by Hipgnosis Song Management, in which Blackstone is also an investor.