Blackstone Shakes Up Music Industry With Hipgnosis Bid: Details

Author: Shivani Kumaresan | April 22, 2024 07:09am

Blackstone Inc (NYSE:BX) has emerged as a contender in a potential bid to acquire Hipgnosis Songs Fund for approximately $1.5 billion, surpassing a previous offer from Apollo Global Management (NYSE:APO) backed Concord, igniting a takeover battle for the renowned music rights owner.

Blackstone made a fourth and latest proposal valuing Hipgnosis at $1.24 per share in cash, overshadowing Concord’s bid of $1.16 per share, reported Reuters.

Hipgnosis Songs Fund, renowned for its diverse catalog, including works by artists such as Shakira and Red Hot Chili Peppers, saw its shares surge by 10%.

The potential acquisition has stirred anticipation, with Hipgnosis signaling its inclination to endorse Blackstone’s offer should the private equity giant formalize its bid.

The report further noted that Hipgnosis Songs Capital (HSC), a collaboration between Hipgnosis Songs Management (HSM) and Blackstone, holds rights to a vast array of music, including compositions by Justin Bieber, Nelly Furtado, and Justin Timberlake, among others.

Notably, Blackstone is a majority owner of Hipgnosis Songs Management (HSM), the fund’s investment adviser. This development comes after Hipgnosis had previously inked a $1.4 billion agreement with Concord.

Hipgnosis Songs Fund, founded by industry veteran and former CEO Merck Mercuriadis, commenced a strategic review last year following shareholder unrest, which cast doubt on its future trajectory.

As per the report, Tensions escalated between Hipgnosis and HSM, chaired by Mercuriadis, amid disagreements over a call option.

Price Action: BX shares closed lower by 1.60% at $118.40 on Friday.

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