Justin Bieber is selling the rights to the song for $200 million, joining a long list of stars cashing in

Justin Bieber has sold his music publishing and recording catalog shares to the Blackstone-backed Hipgnosis Songs Fund for $200 million, the company announced Tuesday, marking the industry’s latest blockbuster rights deal.

The sale, which has been rumored for weeks, leads the star, 28, to join a list of artists who have recently cashed in their catalogs.

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

The staggering sums – Springsteen’s catalog went to Sony for half a billion dollars – are considered safe bets both for older artists who are getting their finances in order and for investors who can count. on consistent returns from proven music and the viability of streaming.

Younger catalogs are seen as riskier territory, but Bieber is among the best-selling artists of all time, and now Hipgnosis has its share in some of the biggest hits of the 21st century, including Baby and Pardon.

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

Hipgnosis said it acquired Bieber’s copyright interest in its catalog of 290 songs – all of its music released before December 31, 2021.

Bieber’s longtime home of Universal will continue to administer the catalog and still owns the artist’s master recordings. Hipgnosis has acquired the artist’s interest in its masters as well as its neighboring rights – a royalty whereby its owner receives payment each time a song is performed publicly.

After the Canadian singer was discovered on YouTube as a teenager, Bieber shot to worldwide fame, selling over 150 million records.

He’s had eight No. 1 records on Billboard’s Top Albums lists, and his songs have been streamed on Spotify alone more than 32 billion times.

“Justin Bieber’s impact on global culture over the past 14 years has been truly remarkable,” said Hipgnosis chief Merck Mercuriadis, a longtime music industry executive.

“At just 28 years old, he is one of a handful of defining artists of the streaming era that revitalized the entire music industry, taking with him a loyal, global audience on a journey of phenomenon. teenagers to [a] culturally significant artist.”

Bieber’s health has suffered recently as the star halted his tour indefinitely after revealing he had been diagnosed with Ramsay Hunt syndrome, a rare complication of shingles that caused him partial facial paralysis. He was scheduled to play two concerts at the Coca-Cola Arena in Dubai last October.

What sales mean

Music catalogs have always changed hands, but the current publishing sales boom has accelerated rapidly as financial markets have increasingly been drawn to lucrative music portfolios as an asset class.

Mercuriadis’ Hipgnosis, which went public on the London Stock Exchange in 2018, played a big role in publicizing the surge in sales.

The sector had seemed to cool off recently, but the Bieber deal shows that investors are still hungry for music acquisitions.

Owners of a song’s publishing rights receive a discount in various scenarios, including radio playback and streaming, album sales, and use in advertising and film. Recording rights govern reproduction and distribution.

The flurry of sales came amid a broader conversation about artist ownership of the work, amplified in large part by Taylor Swift, who found resounding success re-recording her first six albums so she could control their master registration rights.

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

Braun has been Bieber’s manager for 15 years and released a statement that read, “When Justin made the decision to enter into 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 by the magnitude of this deal.”

Which artists have sold their rights?

imagine Dragons

American pop rock band Imagine Dragons have sold their entire catalog through 2020 to Concord Music Publishing in a deal that reportedly topped $100 million.

Justin Timberlake

In May of last year, Justin Timberlake sold his entire catalog to Hipgnosis for over $100 million.

Shakira

Colombian singer Shakira sold her catalog of 145 songs to Hipgnosis in January 2021 for an undisclosed amount.

Neil Young

Neil Young sold 50% of his catalog – 1,180 titles – to Hipgnosis in January 2021 in a deal worth $150 million.

Bob Dylan

Bob Dylan sold 100% of his publishing catalog of over 600 songs to Universal Music in 2020, in a deal worth up to $400 million. In January 2022, Sony acquired the rights to his master recordings for $200 million.

Stevie Nicks

Stevie Nicks sold a majority stake in her music rights for $100 million last year.  AFP

In January of last year, Stevie Nicks sold a majority stake in her catalog to Primary Wave for $100 million.

The killers

American rock band The Killers have sold their entire catalog through 2020 to Eldridge Industries for an undisclosed price.

– Additional report by AFP

Updated: January 25, 2023, 09:04

Justin Bieber is selling the rights to the song for $200 million, joining a long list of stars cashing in

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