Blackstone Makes $1.5 Billion Bid for Hipgnosis Songs Fund

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Blackstone has submitted a prospective offer to acquire Hipgnosis Songs Fund for around $1.5 billion.
Blackstone has submitted a prospective offer to acquire Hipgnosis Songs Fund for around $1.5 billion.

Blackstone has made a potential offer to acquire Hipgnosis Songs Fund for about $1.5 billion, outbidding Apollo-backed Concord.

The bid has triggered a takeover battle for the owner of music rights by artists such as Shakira and Red Hot Chili Peppers.

Market Response:

Hipgnosis shares rose by 10% to 1.01 pounds ($1.25) in early trade, reaching their highest level since September 2022.

Blackstone’s latest proposal values Hipgnosis at $1.24 per share in cash, exceeding Concord’s bid of $1.16 per share.

Strategic Considerations:

Hipgnosis has indicated that it would recommend a higher bid from Blackstone if the private equity firm tables a formal offer.

Blackstone is already the majority owner of Hipgnosis Songs Management (HSM), the fund’s investment adviser, and has a call option to purchase Hipgnosis’s portfolio of songs.

Portfolio Assets:

Hipgnosis Songs Capital (HSC), a partnership between HSM and Blackstone, owns music rights to artists such as Justin Bieber, Nelly Furtado, and Justin Timberlake.

Hipgnosis initiated a strategic review last year after facing shareholder dissent, leading to disputes over the call option with HSM.

Road Ahead:

The board and advisers of Hipgnosis will continue to provide Blackstone access to confirmatory due diligence, enabling Blackstone to announce a firm intention to make an offer as soon as possible.

Shareholders previously rejected a $440 million deal to sell catalogs to HSC in October, citing valuation concerns.

James Adam

James Adam, a noted business writer for CEO Times Magazine, specializes in insightful industry analysis and executive profiles. Known for his clear, concise style, James offers readers an expert perspective on global business trends and market dynamics.

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