Justin Bieber sells all his music rights in a deal valued at $200 million

First modification: 01/25/2023 – 01:30

The sale had been rumored for weeks, and with it the 28-year-old artist joins the list of artists who have recently made cash with their catalogues.

Hipgnosis did not disclose the terms of the deal, but a source close to the matter told the AFP news agency that the value was around $200 million.

Contemporary stars such as Justin Timberlake and Shakira have sold large holdings of their work – both also struck deals with Hipgnosis – but the move has been seen mostly among legacy artists such as Bob Dylan and Bruce Springsteen.

The staggering sums – Springsteen’s catalog was sold to Sony for $500 million – are seen as safe bets for both veteran artists getting their finances in order and investors who can count on the steady returns from established music. and the feasibility of streaming.

The younger catalogs are considered riskier territory, but Bieber is among the best-selling artists of all time, and now Hipgnosis has his share in some of the biggest hits of the 21st century, like “Baby” and “Sorry.”

Hipgnosis Songs Capital is a $1 billion venture between financial giant Blackstone and Britain’s Hipgnosis Song Management.

Hipgnosis has stated that it has acquired Bieber’s interest in the copyright to his 290-song catalogue, meaning all of his music released before December 31, 2021.

Universal, Bieber’s longtime home, will continue to manage the catalogue, another source close to the deal said, and continues to own the artist’s master recordings. Hipgnosis has acquired the artist’s interest in its masters, as well as its related rights, a royalty for which its owner is paid each time a song is publicly played.

“Really Remarkable”

After being discovered on YouTube as a teenager, Bieber rose to worldwide fame and has sold more than 150 million records.

He has achieved eight number one hits on Billboard’s best-selling album chart and his songs have been streamed on Spotify more than 32 billion times.

“Justin Bieber’s impact on world culture over the past 14 years has been truly remarkable,” Merck Mercuriadis, the head of Hipgnosis and a longtime music industry executive, said in a statement.

“At just 28 years old, he is one of the few defining artists of the streaming era who has reinvigorated the entire music industry, taking a loyal, global audience with him on a journey from teen phenomenon to culturally significant artist.”

Bieber’s health has suffered recently. The star went on an indefinite hiatus from touring after revealing that she had been diagnosed with Ramsay Hunt syndrome, a rare complication of shingles that caused partial facial paralysis.

A lucrative asset class

Music catalogs have always changed hands, but the current boom in publishing sales had escalated rapidly, with financial markets increasingly drawn to lucrative music portfolios as an asset class.

Mercuriadis’ Hipgnosis, which was listed on the London Stock Exchange in 2018, has played an important role in publicizing the rebound in sales.

The industry had seemed to cool off recently, but the Bieber deal shows that investors remain eager for music acquisitions.

Owners of a song’s publishing rights receive a cut in several scenarios, including radio and streaming play, album sales, and use in advertising and movies. Recording rights regulate reproduction and distribution.

The flurry of sales came amid a broader debate over artist ownership, amplified in large part by Taylor Swift, who has resoundingly re-recorded her first six albums to gain control of her recording rights. originals.

This move stems from Swift’s very public feud with Scooter Braun, the music manager whose company once owned her original masters, and who later sold them to investment firm Shamrock Holdings.

Braun has managed Bieber for 15 years, and said in a statement that “when Justin made the decision to do a catalog deal we quickly found the best partner to preserve and grow this incredible legacy was Merck and Hipgnosis.”

“Justin is truly a once-in-a-generation artist and that is reflected and recognized in the magnitude of this deal.”

with AFP