Blackstone Fronts $1B for Music IP, Stake in Hipgnosis Song Management

Last 7 days, studies suggested that Blackstone (NYSE: BX) was preparing to commit $1 billion in new music legal rights as portion of an settlement with Hipgnosis founder Merck Mercuriadis. Now, the billion-greenback partnership has formally launched.  

New York City-primarily based Blackstone – which in April obtained Demise Row Information owner eOne Songs (now MNRK Songs Team) for $385 million – formally unveiled its settlement with Hipgnosis (specially Hipgnosis Music Administration – not the investment decision fund itself) and Merck Mercuriadis this early morning. The entities’ partnership “will at first produce c.$1 billion to obtain tunes rights and deal with catalogues,” according to higher-ups, with an emphasis on buying stakes “in music, recorded audio, audio IP and royalties.”

In addition, Blackstone is established to “take an possession stake in” Hipgnosis Tune Administration – which serves as “investment advisor to Hipgnosis Songs Fund,” or the publicly traded business that’s scooped up billions in music IP (like dropping north of $1 billion in FY 2021 on your own) considering that arriving on the scene in 2018. To be guaranteed, 2021’s initial nine and a 50 % months have witnessed the London-based mostly fund ink offers with Christine McVie, Lindsey Buckingham, Shakira, veteran producer Jimmy Iovine, and the Red Hot Chili Peppers.

Finally, concerning the partnership’s nuances, Blackstone intends to “support the expansion of” Hipgnosis Song Management’s “infrastructure and small business features, such as the enhancement of new music management expertise, information science capabilities and know-how options.”

And Hipgnosis Tunes Fund proper, for its component, “is expected to gain from Blackstone’s expense in HSM’s management abilities and will have the appropriate to co-commit in future catalogue acquisitions alongside the new Blackstone–HSM partnership.”

Addressing the partnership in a statement, Merck Mercuriadis highlighted the perceived opportunity associated with the billion-greenback tranche in terms of investments as effectively as furthering the growth of Hipgnosis’s track fund.

“Hipgnosis Tune Management has firmly set up tracks as an asset class,” mentioned the longtime tunes-market manager Mercuriadis. “This new partnership with Blackstone will provide financial power to make investments in established music as well as grow our tune management group and convey supplemental sophistication to HSM, enabling us to build bigger price to our stakeholders like our songwriters and shareholders in Tune.

“Given the strength of our pipeline, we see the initial determination as just the begin of a lengthy-time period partnership between Blackstone and Hipgnosis that will also include things like co-expenditure with Track,” he concluded.

In a assertion of his individual, Qasim Abbas, a senior running director with Blackstone Tactical Prospects, pointed to “the extended time period, sustainable price we see in innovative content material throughout the wider entertainment industry.”

On this entrance, inspite of the formerly mentioned billions of dollars that Hipgnosis has shelled out to buy audio IP, a range of other businesses are continuing to acquire catalog stakes of their have. Major Wave, BMG, Round Hill New music, Reservoir, Harmony, and Irving Azoff’s Iconic Artists Team depict just some of the entities that have injected thousands and thousands of pounds into music legal rights to this issue in 2021.

Kenneth Proto

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