Blackstone to Invest $1 Billion in Music Rights

plans to invest $1 billion in shopping for music rights and managing catalogs, a switch the asset supervisor said will revenue from the rapid growth of online streaming.

The funding will come as part of a partnership with an advisory company affiliated with

, a music-investment agency that trades on the London Stock Change. Hipgnosis, led by former pop-star supervisor Merck Mercuriadis, buys artists’ monitor catalogs and earns earnings when the music is streamed on-line or utilized in movies or selling.

By partnering with the Hipgnosis advisory company, Blackstone hopes to cash in on new methods during which followers are taking in music via the internet. “The music enterprise has been on the forefront of the fast-growing streaming monetary system and is unlocking new strategies of consuming content material materials,” Blackstone govt Qasim Abbas said.

Bloomberg reported remaining week that Blackstone and the advisory company had been in talks.

The Hipgnosis fund could have the becoming to co-invest inside the new Blackstone partnership’s catalog acquisitions, the companies said. Blackstone will take an possession stake in Mr. Mercuriadis’s advisory company and might make investments to reinforce the company’s information and know-how capabilities to help the partnership deal with music rights further successfully.

Hipgnosis has said that its function is to find out songs as an funding asset class. Mr. Mercuriadis, its founder, beforehand managed singers akin to Beyoncé and Elton John and bands along with Weapons N’ Roses and Iron Maiden.

Hipgnosis went public in 2018. As of June, it owned the rights to higher than 64,000 songs, along with virtually 14,000 top-ten hits. Neil Youthful, Journey, Fleetwood Mac and Mariah Carey are among the many many artists whose songs Hipgnosis has invested in.

The Covid-19 pandemic has boosted people’s use of streaming to take heed to conventional songs, Mr. Mercuriadis said in June.

Totally different huge asset managers have lined up comparable bets on music rights, every through investments in several companies and by shopping for rights instantly.

By the use of its credit score rating arm,

Apollo Global Management Inc.

remaining week devoted to once more HarbourView Equity Companions, a model new company that plans to construct up monitor rights, with a $1 billion funding. The deal includes a combination of debt and equity that shall be used to purchase belongings, an Apollo spokeswoman said.

KKR & Co. Inc. earlier this yr took a majority stake in a pop-song catalog from producer Ryan Tedder. It has moreover launched a partnership with BMG, a doc label and music author, that will see KKR commit about $1 billion to music-rights investments.

Hedge-fund supervisor

William Ackman

bought a ten% curiosity in

Universal Music Group

this summer season season ahead of its spinoff as a public company from

Vivendi SE.

He had beforehand tried to place cash into Frequent through a special-purpose acquisition agency he managed, nevertheless the deal fell through amid regulatory scrutiny.

Write to Matt Grossman at

Copyright ©2021 Dow Jones & Agency, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8

Source link


News7h: Update the world's latest breaking news online of the day, breaking news, politics, society today, international mainstream news .Updated news 24/7: Entertainment, the World everyday world. Hot news, images, video clips that are updated quickly and reliably

Related Articles

Back to top button