Music industry mogul Merck Mercuriadis made waves in the industry six years ago when he launched Hipgnosis, a company that went on a spending spree, acquiring the song catalogs of big-name artists like Neil Young, Shakira, Justin Bieber, and the Red Hot Chili Peppers. But now, after a turbulent year involving scandal and controversy, Mercuriadis is stepping down as Blackstone acquires the assets of Hipgnosis.
Hipgnosis Songs Fund, listed on the London Stock Exchange, owns the rights to thousands of songs, while Hipgnosis Song Management, run by Mercuriadis, handles dealmaking and administration for these songs. Blackstone recently invested $1 billion to take majority control of the adviser firm.
The board of Hipgnosis Songs Fund accepted Blackstone’s $1.6 billion offer for the company’s assets, marking a new chapter in the company’s history. After going public in 2018, Hipgnosis made headlines by acquiring song rights worth over $2 billion and presenting pop song royalties as more valuable than gold or oil to potential investors.
However, as the company faced scrutiny and criticism for overpaying for catalogs, its share price plummeted below the value of its assets. Shareholders revolted, triggering changes within the company, including a reassessment of its assets and operations that revealed overpayments and inflated revenue reports.
After considering a deal to sell assets to Concord for $1.4 billion, Hipgnosis engaged in a bidding war with Blackstone, culminating in Blackstone’s winning bid of $1.31 per share. Mercuriadis announced his departure from Hipgnosis Song Management following Blackstone’s acquisition of the entire catalog.
In a statement, Mercuriadis expressed his intention to focus on advocating for proper compensation of songwriters. This strategic shift marks a new direction for him, a departure from his previous role in the high-profile music investment world.
