Veteran rock star Neil Young has sold half the rights to his song catalog to Hipgnosis Song Fund SONG,
as the British publisher wants to win the boom in music ratings amid the popularity of broadcast services.
Under the terms of the deal, announced Wednesday, Hipgnosis, listed on FTSE 250, is a 50% stake in the 75-year-old Canadian singer’s portfolio of 1,180 tracks, including “Heart of Gold,” “Rockin’ in the Free World “” The Cinnamon Girl.
Hipgnosis did not disclose the value of the deal, which is estimated to be priced at $ 150 million, according to Music Business Worldwide.
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 like “Blowin ‘in the Wind” and “The Times They Are A- Changin ‘”for $ 300 million reported. A few days earlier, Fleetwood Mac vocalist and songwriter Stevie Nicks sold an 80% stake in her music to Primary Wave for an estimated $ 80 million.
Read: 5 Reasons Why Musicians Like Bob Dylan And Stevie Nicks Sell Their Song Catalogs Right Now
Music consumption has been increasing thanks to streaming platforms such as Spotify SPOT,
and Apple Music, which have allowed listeners to rediscover and play some of their favorite songs from recent years. According to the Wall Street Journal, composer catalogs get selling prices ten to ten times a year, compared to those of eight to thirty (13) years earlier.
Founded by music industry veteran Merck Mercuriadis, who had previously managed artists such as Elton John, Beyoncé and Morrissey, Hipgnosis is listed on the London Stock Exchange in 2018 and now has a market capitalization of nearly $ 1.3 billion.
The publisher invests in songs and music intellectual property rights and generates revenue by converting music rights into a steady stream of revenue, earning money every time one of their songs is played on the radio or appears on an advertisement or a television movie.
“This is a deal that changes Hypgnosis forever,” Mercuriadis said when announcing the deal Wednesday. “I built Hipgnosis to be a company that Neil would like to be part of. We have a common integrity, ethos and passion born of a belief in music and these important songs, ”he added.
Young, which gained prominence in the 1960s and 1970s, has released nearly 50 studio albums and more than 20 live albums, of which 18 are certified gold, seven platinum and three platinum.
In December, Young withdrew the lawsuit against U.S. President Donald Trump’s campaign to play two of his songs at unauthorized campaign rallies.
Read: Artists call for gold by selling their musical rights. How investors can earn.
Shares of Hipgnosis, which have already risen almost 3% so far this year, were trading at 0.28% in London on Tuesday.
The publisher has been in the midst of acquisitions since September, after raising £ 250m through an action to fund new acquisitions.
Earlier this week, the company obtained 100% of the catalog of 161 songs from former Fleetwood Mac guitarist Lindsey Buckingham, plus 50% of the songs that have not yet been released. He also acquired the copyright of the world producer from 259 songs by Jimmy Iovine, who produced artists such as Bruce Springsteen and Patti Smith before founding Beats Electronics, which Apple AAPL,
bought in 2014 for $ 3 billion.
Hipgnosis has spent more than £ 1bn on acquiring rights to nearly 60,000 songs, including those of Blondie, Barry Manilow and Chrissie Hynde from suitors, among others.