Hipgnosis Songs Fund, a company that played a significant role in the music industry’s surge of catalog deals, has agreed to a $1.4 billion takeover by Concord Chorus, a rival company. This acquisition comes after a tumultuous period for Hipgnosis, which saw its share price decline significantly.
Here are some key points about this deal:
- Deal Value: The takeover is valued at $1.402 billion and represents an opportunity for Hipgnosis shareholders to realize their holdings at a premium.
- Background: Hipgnosis Songs Fund had faced challenges, including a failed investors continuation resolution and a partial catalog sale. The company decided not to recommence paying dividends for the foreseeable future as it focused on debt reduction.
- Catalog: Hipgnosis Songs Fund’s catalog includes stakes in songs by artists such as Neil Young, Justin Bieber, Journey, Lindsey Buckingham, Blondie, and Justin Timberlake.
- Management Transition: After the acquisition, Concord is expected to take over the management of Hipgnosis’ assets. Concord has a track record of completing more than 100 transactions across recorded music, music publishing, and theatricals, with a total spending spree of US$2.8 billion since 2015.
This deal marks a significant development in the music industry landscape, and Concord aims to manage the Hipgnosis catalog in the interests of composers and performers.
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