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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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