Hipgnosis Songs Fund Snapped Up by Blackstone in £1.3 Billion Deal
Quote from VATcal on 29/04/2024, 21:06Music rights giant Hipgnosis Songs Fund has been acquired by private equity firm Blackstone for £1.26 billion ($1.6 billion). This follows a bidding war between Blackstone and Concord Music, owner of the Round Hill Music Royalty Fund.
Hipgnosis, boasting music back catalogues of artists like Blondie, Shakira, and the Red Hot Chili Peppers, accepted Blackstone's offer of $1.30 per share. This represents a significant premium of 48% compared to Hipgnosis's closing share price on April 17th, before Concord entered the bidding with a £1.1 billion offer.
Following the advice of investment bank Singer Capital Markets, Hipgnosis's board unanimously recommended the Blackstone proposal, deeming it "fair and reasonable." Robert Naylor, Chairman of Hipgnosis, expressed delight at the outcome, stating that investors would now have the chance to "realise their holding at an increased premium."
Blackstone's senior managing director, Qasim Abbas, highlighted the extensive discussions and negotiations that led to the offer. He emphasized that the deal provides shareholders with "the certainty of cash today."
This acquisition adds over 65,000 songs to Blackstone's already impressive music rights portfolio, which includes tracks by Justin Bieber and Justin Timberlake. Blackstone has also invested in US performance rights organisation Sesac, boasting affiliates like Bob Dylan and Adele.
The deal marks a significant development in the ongoing consolidation of the music rights industry, driven by the increasing value of music streaming.
Music rights giant Hipgnosis Songs Fund has been acquired by private equity firm Blackstone for £1.26 billion ($1.6 billion). This follows a bidding war between Blackstone and Concord Music, owner of the Round Hill Music Royalty Fund.
Hipgnosis, boasting music back catalogues of artists like Blondie, Shakira, and the Red Hot Chili Peppers, accepted Blackstone's offer of $1.30 per share. This represents a significant premium of 48% compared to Hipgnosis's closing share price on April 17th, before Concord entered the bidding with a £1.1 billion offer.
Following the advice of investment bank Singer Capital Markets, Hipgnosis's board unanimously recommended the Blackstone proposal, deeming it "fair and reasonable." Robert Naylor, Chairman of Hipgnosis, expressed delight at the outcome, stating that investors would now have the chance to "realise their holding at an increased premium."
Blackstone's senior managing director, Qasim Abbas, highlighted the extensive discussions and negotiations that led to the offer. He emphasized that the deal provides shareholders with "the certainty of cash today."
This acquisition adds over 65,000 songs to Blackstone's already impressive music rights portfolio, which includes tracks by Justin Bieber and Justin Timberlake. Blackstone has also invested in US performance rights organisation Sesac, boasting affiliates like Bob Dylan and Adele.
The deal marks a significant development in the ongoing consolidation of the music rights industry, driven by the increasing value of music streaming.
