25th January 2023 11:06:15 AM
2 mins readJustin Bieber has sold his share of the rights to his music to Hipgnosis Songs Capital for a reported $200m (£162m).
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The firm now owns the pop star's stake in some of the biggest hits of recent years, including Baby and Sorry.
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Bieber, one of the best-selling artists of the 21st Century, joins a growing group of artists who have cashed out on their catalogues.
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The move means Hipgnosis will receive a payment every time a song they own part of is played in public.
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The company - a $1bn venture between financial giant Blackstone and the British Hipgnosis Song Management - acquired Bieber's publishing copyrights to his 290-song back catalogue.
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That includes all of his music released before 31 December 2021 - and his writer's share.
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The star's artist rights to his master recordings were also acquired in the deal.
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Hipgnosis has not disclosed the terms of the deal, but a source told the news agency AFP it was worth around $200m.
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Artists are increasingly selling stakes in their work to music funds - including Justin Timberlake and Shakira, who have also struck deals with Hipgnosis.
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But the trend is more common among older artists. In the last two years, music legends Bob Dylan and Bruce Springsteen both sold back catalogue rights to Sony.
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Springsteen received a reported $500m (£376m) for the sale of his life's work.
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The Hipgnosis Songs Fund is building up a catalogue of hit songs and inviting big institutional investors to share in the proceeds.
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The fund floated on the London Stock Exchange in 2018.
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The man who founded it, Merck Mercuriadis, previously said hit songs can be "more valuable than gold or oil".
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He said Bieber's music was "arguably the definitive soundtrack of the streaming revolution", with 13 songs that have each achieved more than a billion streams on platforms like YouTube and Spotify.
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As his audience are still relatively young, he added, royalties will continue to pour in for "60 or 70 years".
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"The beautiful thing about music is that when these songs become hits, they become part of the fabric of our lives and they live on forever," Mercuriadis told BBC Radio 4's Today programme.
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However, the company's share price has fallen by more than 27% since this time last year, as investor interest waned.
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In December, Mercuriadis called the share price situation a "disappointment", but said he believed in the company's long-term profitability.
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"In the wider music market, people continue to listen to and pay for music irrespective of today's cost of living challenges with annual audio streams in the US passing the one trillion mark for the first time," he said.
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"These are all exciting indicators for the further growth that we will experience as income flows through the collection process into Hipgnosis."
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The company's share price rose by 1.6% after the Justin Bieber deal was announced.
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