According to Hipgnosis Songs Capital, the agreement to purchase Justin Bieber’s publishing, artist royalties from his master recordings, and neighboring rights have been finalized. According to a source with knowledge of the matter, the price of the agreement was just north of $200 million, making it the highest rights sale for an artist of Bieber’s generation.
Additionally, it is the largest purchase Hipgnosis has made to date. It includes all 290 of Justin Bieber’s albums released by December 31, 2021, including Justice (2021). According to an earlier December report from Billboard, founder and CEO Merck Mercuriadis was attempting to “complete roughly $500 million in transactions” between mid-November and mid-December.
At the time, a Bieber deal for more than $200 million was reportedly in the works. The Bieber purchase seems to be a part of that disclosure, even if Mercuriadis did not specify the deals at the time.
Rising interest rates and fluctuations in currency exchanges cooled the sector in 2022 after a hot 2021 for catalog sales, which saw deals with music legends like Bruce Springsteen and Paul Simon make headlines and some of the most prominent private equity players in the world, including Blackstone, KKR, and Apollo Global Management, all taking stakes in the market.
Deals have nevertheless been completed. Last year, Hipgnosis purchased part of the rights from Justin Timberlake, Leonard Cohen, Nile Rodgers, Kenny Chesney, Neil Young, and Nelly Furtado. In 2022, Sting, the David Bowie estate, Phil Collins and the other members of Genesis, Future, the Frank Zappa estate, and Neil Diamond sold some of their assets to investors.
Newer catalogs, like Justin Bieber’s, are typically viewed as riskier investments since they lack the longevity evidence of older catalogs. As a result, they frequently trade at lower multiples than those of established performers.
However, following the release of his 2009 debut album, My World, and the 2010 follow-up, My World 2.0, which peaked at number one on the Billboard 200 and featured the hit song “Baby,” Bieber’s popularity has been indisputable.
The following are some other articles associated with Justin Bieber, links to which are provided below:
- Is Hailey Bieber Pregnant With Justin Bieber? Truth or Are Just Fake Reports?
- Justin Bieber The Youngest Pop Star Has Sold Song Rights
- Justin Bieber Spent $1.3 Million on an NFT of a Bored Ape Now it’s Worth $69K
Eight of Justin Bieber’s albums have peaked at No. 1 on the Billboard 200 chart, including Justice, his most recent full-length studio album. Bieber has amassed 26 top 10s on the Billboard Hot 100, including eight No. 1s. According to Luminate. His albums have sold 13.2 million traditional copies out of 28 million equivalent album units in the United States.
In the United States, 16.6 billion on-demand official streams of his collected tracks that are mostly credited to him have been made. UMG will always hold the recorded music copyrights to Bieber’s compositions, even though Hipgnosis will now get Bieber’s portion of artist income for his masters.
“The impact of Justin Bieber on global culture over the last 14 years has truly been remarkable,” said Mercuriadis in a statement.
“At only 28 years of age, he is one of a handful of defining artists of the streaming era that has revitalized the entire music industry, taking a loyal and worldwide audience with him on a journey from teen phenomenon to culturally important artist. This acquisition ranks among the biggest deals ever made for an artist under the age of 70, such is the power of this incredible catalog that has almost 82 million monthly listeners and over 30 billion streams on Spotify alone. Scooter Braun has helped him build a magnificent catalogue, and it’s a pleasure to welcome Justin and his incredible songs and recordings to the Hipgnosis family.”
“I want to thank Merck and his entire Hipgnosis team and all of our partners involved for working so hard to make this historic deal happen,” says Scooter Braun, Bieber’s manager for 15 years, founder of SB Projects and CEO of HYBE America.
“When Justin made the decision to make a catalog deal we quickly found the best partner to preserve and grow this amazing legacy was Merck and Hipgnosis. For over a decade now Justin Bieber has entertained us and moved us with some of the biggest songs in the world. I’m so proud of him and all those involved over the years in helping amass this incredible body of work. Justin is truly a once in a generation artist and that is reflected and acknowledged by the magnitude of this deal. For 15 years I have been grateful to witness this journey and today I am happy for all those involved. Justin’s greatness is just beginning.”
Braun, David Bolno of NKSFB, Audrey Benoualid and Aaron Rosenberg of Myman Greenspan Fox, and Michael Rhodes of Cooley were all involved in representing Bieber.
Justin Bieber has sold his music rights to Hipgnosis Songs Capital for over $200 million. pic.twitter.com/Pz16cia0Sb
— Pop Crave (@PopCrave) January 24, 2023
Hipgnosis Songs Capital was represented by Robert Fowler and Lisa Ong of HW Fisher, Seth Traxler and Rory Wellever of Kirkland & Ellis LLP, and William Leibowitz of William R. Leibowitz Law Group.
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