Veteran rock star Neil Young has sold half of the rights to his song catalog to Hipgnosis Song Fund SONG,
while the British publishing house wants to take advantage of the boom in music valuations amid the popularity of streaming services.
Under the deal announced Wednesday, Hipgnosis of the FTSE 250 takes a 50% stake in the 75-year-old Canadian singer’s portfolio of 1,180 tracks, which includes’ Heart of Gold ‘,’ Rockin ‘in the Free World’. ”And“ Cinnamon Girl. ”
According to Music Business Worldwide, Hipgnosis did not disclose the value of the deal, which is estimated to have a price tag of $ 150 million.
The deal comes less than a month after Universal Music Publishing Group signed a historic deal to buy Bob Dylan’s full songwriting catalog, including classics such as “Blowin ‘in the Wind” and “The Times They Are A-Changin'” for a reported $ 300 million. Just a few days earlier, Fleetwood Mac singer and songwriter Stevie Nicks had sold an 80% stake in her music to an estimated $ 80 million to Primary Wave.
Read: 5 reasons why musicians like Bob Dylan and Stevie Nicks are currently selling their song catalog
Music consumption has increased thanks to streaming platforms such as Spotify SPOT,
and Apple Music, which made it possible for listeners to rediscover and play some of their favorite tracks from the past year. Songwriter catalogs fetch sales prices 10 to 18 times annual royalties, compared to 8 to 13 times in previous years, according to The Wall Street Journal.
Hipgnosis was founded by veteran of the music industry, Merck Mercuriadis, who has previously managed artists including Elton John, Beyoncé and Morrissey.
The publishing house invests in songs and musical intellectual property, and generates revenue by making music rights in a steady stream of income and earning money every time one of the songs is played on the radio or in a television commercial or movie.
“This is an agreement that will change Hipgnosis forever,” Mercuriadis said when announcing the agreement on Wednesday. ‘I built Hipgnosis to be a business in which Neil wants to participate. We have a common integrity, ethos and passion, born of a belief in music and these important songs, ‘he added.
Young, who became prominent in the 1960s and 1970s, has released nearly 50 studio albums and more than 20 live albums, including 18 certified gold, seven platinum and three multiplatinum.
In December, Young dropped his lawsuit against US President Donald Trump’s campaign to play two of his songs at campaign rallies without permission.
Read: Artists hit gold by selling their music rights. How investors can make money.
Shares in Hipgnosis, which has risen nearly 3% so far this year, traded 0.28% lower on Wednesday.
The publisher has been in the process of acquiring since September, having raised £ 250m by placing shares to fund further acquisitions.
Earlier this week, the company snatched up 100% of the 161-song catalog of former Fleetwood Mac guitarist Lindsey Buckingham, plus 50% of the songs not yet released. It also obtained the worldwide royalties from producers of 259 songs by Jimmy Iovine, produced by artists including Bruce Springsteen and Patti Smith before founding Beats Electronics, which Apple AAPL
bought in 2014 for $ 3 billion.
Hipgnosis has now spent more than £ 1 billion acquiring rights in almost 60,000 songs, including those of Blondie, Barry Manilow and Chrissie Hynde of the Pretenders, among others.