Justin Bieber cashes out right as the music royalty bubble pops – The Average Joe

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Times are tough even for Justin Bieber, who sold his catalog 290+ Hymns of Hypgnosis are hymns for capital $200M.

It’s a huge deal for an artist of his generation, but enough Biebs. Move a little.

Today’s spotlight is on UK-listed Hipgnosis Songs Fund (LON:SONG) – the company behind the deal.

Music catalogs have become increasingly popular in recent years. See: Justin Timberlake ($100M), give ($300M) and Bruce Springsteen ($550M)

  • Between 2014 and 2021, music catalog sales (M&A) grew 600x from $20M to do $12B.
  • Investors like music royalties because they are predictable and recession-proof.

In 2021, the legend Bill Ackman was compared “Food and water” music – and a take 10% A stake in Vivendi SE (EPA:VIV), the parent company of Universal Music.

Who is Hypgnosis?

Hypgnosis Songs Fund Structured as an investment trust that invests in music royalties – owning the rights 65K+ Songs from artists including Shakira, Lindsay Buckingham and the Red Hot Chili Peppers. +Beeps.

The company went public in 2018, but over the past year, investors have criticized Hypgnosis for paying too much for music rights.

That and rising rates have lowered Hypgnosis by a few decibels.

  • $SONG is almost lost 35% Its value is from the 2021 peak.
  • But it also raised its dividend yield 6.1%Juicy

The music industry has had a tough two decades – and only recently has it found its footing as streaming has taken shape.

But investing in music rights is still a relatively new idea and estimating music royalties is not easy.

  • Will the Biebs’ songs still be hits in 20 years?
  • Can a song like Kate Bush’s Running Up That Hill come out after 37 years?
  • Will music sales return to 90s glory?

It is as much an art as a science, but – Never say no.


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