Hipgnosis Songs Capital has closed its position to buy 100% of Justin BeiberPublishing, as well as his artist rights to his master recordings and related rights, confirmed Hipgnosis. The deal was priced at only about $200 million, according to a source familiar with the situation, making it the largest rights sale of any artist from Bieber’s generation. It’s also Hipgnosis’ largest acquisition to date, covering 290 titles in Bieber’s catalog released prior to December 31, 2021, including his latest album, justice (2021).
painting It was originally reported in December that Bieber’s deal was worth more than $200 million was at work Central Founder/CEO Merck MercuriadisEfforts to “close deals worth $500 million” between mid-November and mid-December. Although Mercuriadis did not say what the deals were at the time, the Bieber acquisition appears to be part of this revelation.
Following the hot 2021 of catalog sales, with deals with icons like Bruce Springsteen And Paul Simon The headliners and some of the world’s largest private equity players including Blackstone, KKR and Apollo Global Management all grabbed market shares, and rising interest rates and changes in currency exchanges cooled the sector in 2022. Still, the deals got done. last year, Justin TimberlakeAnd Leonard CohnAnd Nile RodgersAnd Kenny ChesneyAnd Neil Young And Nelly Furtado They all sold some of their rights to Hipgnosis. the scorpionAnd David BowieProperty , Phil Collins so is it origin band mates, futureAnd Frank Zappaestate and Neil Diamond It also sold some assets to investors in 2022.
Newer catalogs like Bieber’s are usually considered riskier investments since they don’t have much history behind them to prove staying power. This means that they often sell at multiples lower than those of the classic business. However, Bieber’s success is undeniable since his 2009 debut album, worldwideand follow-up 2010, My World 2.0.0 UpdateAnd The latter topped the Billboard 200 and included the hit single “Baby”. In all, Bieber has charted with eight albums charting at number one on the Billboard 200, including his latest full-length studio release, 2021. justice.
On the Billboard Hot 100, Bieber has accumulated 26 top 10 hits, including eight at number one. His albums have generated 28 million album-equivalent units in the United States, of which 13.2 million are in traditional album sales, according to Luminate. His songs primarily collected have generated 16.6 billion official streams by demand in the United States.
Although Bieber’s share of his masters’ artist royalties will now be directed to Hipgnosis, UMG will continue to own the recorded music copyright to his works in perpetuity.
He said “Justin Bieber’s influence on world culture over the past 14 years has been truly remarkable” Mercuriadis in a statement. At just 28 years old, he’s one of a handful of defining artists in the broadcast era to revitalize the entire music industry, taking a loyal and global audience with him on a journey from teen phenomenon to culturally significant artist. This acquisition ranks among the largest deals ever made. The launch is for an artist under the age of 70, and that’s the strength of this amazing catalog of nearly 82 million monthly listeners and over 30 billion streams on Spotify alone. Scooter Braun has helped him build an incredible catalog, and I’m thrilled to welcome Justin and his amazing songs and recordings to the Hipgnosis family” .
“I would like to thank Merck, the entire Hipgnosis team, and all of our participating partners for working so hard to achieve this historic transaction.” Scooter Braun, Bieber’s director for 15 years, founder of SB Projects and CEO of HYBE America. When Justin made the decision to strike a catalog deal, we quickly found that the best partner to preserve and grow this amazing legacy was Merck and Hipgnosis. For over a decade now, Justin Bieber has entertained and intrigued us with some of the biggest hits in the world. I am so proud of him and everyone involved over the years in helping to put together this amazing work.Justin is truly a once in a generation artist and that reflects and acknowledges the magnitude of the deal.15 years ago I was grateful to witness this journey and today I am so happy for everyone involved.Greatness Justin just started.”
Like Bieber by Brown, David Polno NKSFB, Aaron Rosenberg And Audrey Benolid By Maiman Greenspan Fox, W Michael Rhodes Collie.
Hipgnosis Songs Capital is represented by William Leibovitz group of william r. leibovitz legal, Seth Traxler And Rory Wilfer Kirkland & Ellis LLP, W Robert Fowler And Lisa Ong From HW Fisher.
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