Justin Bieber sells music rights for $264 million

1 week ago 28

NEW YORK - Pop juggernaut Justin Bieber has sold his music publishing and recording catalog shares to the Blackstone-backed Hipgnosis Songs Capital for US$200 million (S$264 million), the company said Tuesday – marking the industry’s latest blockbuster rights deal.

The sale has been rumoured for weeks, and sees the 28-year-old join a who’s who of artists who have cashed out recently on their catalogs.

Hipgnosis did not publicly disclose terms of the deal, but a source close to the matter told AFP it was worth around US$200 million.

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

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

Younger catalogs are seen as riskier territory, but Bieber is one of the best-selling artists of all time, and now Hipgnosis has his share in some of the 21st century’s biggest hits including “Baby” and “Sorry.”

Hipgnosis Songs Capital is a US$1 billion venture between financial giant Blackstone and the British Hipgnosis Song Management.

According to the deal, Hipgnosis has acquired Bieber’s publishing copyrights to his 290-song back catalog – all of his music released prior to December 31, 2021 – including his writer’s share.

It also includes his artist rights to his lucrative master recordings as well as neighbouring rights royalties – a right that sees its owner receive a payment every time a song is played publicly.

But while Hipgnosis will receive the revenues, Bieber’s longtime home Universal will continue...

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