Hipgnosis backs £1bn takeover by Blackstone 1

Hipgnosis backs £1bn takeover by Blackstone

Hipgnosis supports Blackstone’s £1.3bn private equity acquisition

Hipgnosis Songs Fund, a UK-based investment company, has backed a £1.3bn private equity takeover by Blackstone of a leading music industry supplier.

The acquisition of SESAC Holdings, a US-based performance rights organization, brings together two of the biggest players in the music industry.

The move is expected to provide SESAC with the resources it needs to expand its global footprint and compete with rivals such as ASCAP and BMI.

Hipgnosis, which was founded by music industry veteran Merck Mercuriadis, has been on a buying spree over the last few years, acquiring the rights to thousands of hit songs.

The company has become one of the largest music copyright owners in the world, with a portfolio that includes songs by artists such as Beyoncé, Rihanna, and Jay-Z.

The acquisition of SESAC is seen as a strategic move by Hipgnosis to expand its reach in the US market and gain access to SESAC’s extensive catalogue of songs.

Overview of the Takeover

Hipgnosis Songs Fund, the music investment company, has agreed to a £1.3bn private equity takeover by Blackstone, a US investment firm.

The deal is expected to be completed in the third quarter of 2024, subject to regulatory approvals.

Hipgnosis, which was founded in 2018 by Merck Mercuriadis, has been rapidly acquiring song catalogues from famous musicians, including Neil Young, Shakira, and Barry Manilow.

The company has been successful in monetising these catalogues by licensing songs for use in films, television shows, and advertisements.

The takeover by Blackstone is expected to provide Hipgnosis with additional resources to continue acquiring song catalogues and expand its business.

In addition, Blackstone’s expertise in private equity is expected to help Hipgnosis maximise the value of its existing catalogues.

Hipgnosis shareholders will receive £1.45 per share, representing a premium of 10% over the company’s closing price on the day before the announcement of the deal. The company’s board of directors has unanimously recommended that shareholders accept the offer.

Overall, the takeover is expected to benefit both Hipgnosis and Blackstone, as well as the artists whose song catalogues are owned by Hipgnosis.

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