In a groundbreaking deal worth 1.26 billion pounds ($1.57 billion), American investment fund Blackstone has acquired British company Hipgnosis Songs Fund. The acquisition gives Blackstone ownership of the rights to music by renowned artists such as Leonard Cohen, Shakira, and the Red Hot Chili Peppers.
Following the announcement of the transaction, shares of Hipgnosis Songs Fund increased by 2% at auction on April 29. Established by music producer Merc Mercuriadis in 2018, Hipgnosis Songs Fund operates under a business model that involves acquiring rights to songs and generating revenue from streaming and airplay.
The acquisition of Hipgnosis Songs Fund marks a significant investment in the music industry for Blackstone, opening up new opportunities for growth and expansion in the sector. It highlights the increasing value of music rights and underscores investors’ growing interest in this area.
The deal has generated buzz in the media and among industry professionals, reflecting its significance within the music and investment communities. As a key player in the industry, Hipgnosis Songs Fund’s acquisition has the potential to reshape the landscape of music publishing and distribution.
Overall, Blackstone’s acquisition of Hipgnosis Songs Fund represents a strategic move that aligns with their objectives and presents new avenues for growth and diversification in the music industry.