Justin Bieber has sold a stake in his music publishing and recording catalog to Blackstone-backed Hypnosis Songs Capital for $200 million, the company announced Tuesday.
The sale has been rumored for weeks now, but the 28-year-old will join a roster of artists who recently cashed in the catalog.
Hypnosis has not publicly disclosed the terms of the deal, but a source close to the matter told AFP it was worth around $200 million.
Modern stars such as Justin Timberlake and Shakira have sold huge stakes in the work, and both have signed deals with Hypnosis.
Springsteen’s catalog was reportedly handed over to Sony for $500 million, but the staggering amount is due to an older artist that stabilizes finances and a consistent mix of proven music and streaming viability. It is considered a safe bet for both investors who can expect returns.
While the catalog of his youth is seen as more risky territory, Bieber is one of the best-selling artists of all time, and Hypnosis now has the biggest hits of the 21st century, including “Baby” and “Sorry.” Some of the songs have earned his share.
Hipgnosis Songs Capital is a billion-dollar venture between financial giant Blackstone and UK-based Hipgnosis Song Management.
Hipgnosis said it had acquired Bieber’s publishing rights to his back catalog of 290 songs (all his music) released before December 31, 2021.
Another source close to the deal said Bieber’s longtime home, Universal, will continue to control the catalog and still own the artist’s master recordings. Hipgnosis acquired the artist’s ownership and neighboring rights. This is a royalty in which the owner receives payment each time the song is played publicly.
– ‘Prominent’ –
Bieber, who hails from Canada, rose to worldwide fame after being discovered on YouTube as a teenager, selling over 150 million records.
He has eight number one records on Billboard’s Top Albums list and his songs have been streamed over 32 billion times on Spotify alone.
“The impact Justin Bieber has had on global culture over the past 14 years has been truly astonishing,” said Merck Mercuriadis, chief of Hypnosis and longtime music industry executive, in a statement. there is
“At only 28, he is one of the few defining streaming eras who has revitalized the entire music industry and taken a loyal global audience on a journey from teenage phenomenon to culturally significant artist. I’m one of the artists.”
After revealing that Bieber’s health had recently deteriorated and he was diagnosed with Ramsay Hunt syndrome, a rare complication of herpes zoster that caused partial facial paralysis, the star has been touring indefinitely. I’m on hiatus.
– Favorable Asset Class –
Music catalogs have always changed hands, but the current boom in publishing sales is escalating rapidly, and financial markets are increasingly drawn to music portfolios as a lucrative asset class.
Listed on the London Stock Exchange in 2018, Mercuriadis’ Hipgnosis played a major role in touting a surge in sales.
The sector seemed to have cooled off recently, but Bieber’s acquisition shows that investors are still hungry for music acquisitions.
Publishing rights owners of songs receive cuts in a variety of scenarios, including radio play and streaming, album sales, and use in advertising and film. Recording rights govern reproduction and distribution.
A surge in sales occurred amid widespread debate about the ownership of works by artists. Taylor Swift has had great success by re-recording her first six albums and allowing the master to manage his recording rights.
The move stemmed from Swift’s very public feud with music manager Scooter Braun, who once owned the original masters, and later sold them to investment firm Shamrock Holdings. bottom.
Brown, who has been Bieber’s manager for 15 years, said in a statement, “When Justin decided to sign the catalog deal, we immediately knew we were the best partners to preserve and grow this amazing legacy. to be Merck and Hypnosis.”
“Justin is truly a once-in-a-generation artist and that is reflected and recognized in the size of this deal.”