Veteran rock star Neil Young sold half the rights to his song catalog to the Hipgnosis Song Fund SONG,
as the UK publisher hopes to profit from the boom in music ratings amid the popularity of streaming services.
According to the terms of the agreement, announced on Wednesday, Hipgnosis, listed on the FTSE 250, assumes a 50% stake in the portfolio of 1,180 tracks by the Canadian singer of 75 years, which include “Heart of Gold”, “Rockin ‘in the Free World ”and“ Menina Canela ”.
Hipgnosis did not reveal the value of the deal, which is estimated at $ 150 million, according to Music Business Worldwide.
The deal was made less than a month after Universal Music Publishing Group signed a historic deal to buy Bob Dylan’s entire catalog of compositions, including classics like “Blowin ‘in the Wind” and “The Times They Are A-Changin’ “for $ 300. million. A few days earlier, Fleetwood lead singer and songwriter Mac Stevie Nicks sold an 80% stake in his music to Primary Wave for about $ 80 million.
Read: 5 reasons why musicians like Bob Dylan and Stevie Nicks are selling their music catalogs right now
Music consumption has increased thanks to streaming platforms like Spotify SPOT,
and Apple Music, which has allowed listeners to rediscover and play some of their favorite tracks in recent years. Composers’ catalogs are reaching sales prices of 10 to 18 times annual royalties, compared to 8 to 13 times in previous years, according to The Wall Street Journal.
Founded by music industry veteran Merck Mercuriadis, who previously managed artists such as Elton John, Beyoncé and Morrissey, Hipgnosis is listed on the London Stock Exchange in 2018 and now commands a market capitalization of nearly $ 1.3 billion.
The publisher invests in songs and musical intellectual property rights and generates revenue by turning music royalties into a steady stream of revenue, earning money each time one of its songs is played on the radio or featured in a television or film advertisement.
“This is an agreement that will change Hipgnosis forever,” said Mercuriadis in announcing the agreement on Wednesday. “I built Hipgnosis to be a company that Neil would like to be a part of. We have common integrity, ethics and passion born out of a belief in music and these important songs, ”he added.
Young, who gained prominence in the 1960s and 1970s, released nearly 50 studio albums and more than 20 live albums, of which 18 are certified gold, seven are platinum and three are multiplatinum.
In December, Young dropped his lawsuit against US President Donald Trump’s campaign for playing two of his songs at campaign rallies without permission.
Read: Artists are earning gold by selling their musical rights. How investors can profit.
Hipgnosis shares, which have already risen nearly 3% this year, were trading 0.28% less in London on Wednesday.
The publisher has been in a wave of acquisitions since September, after raising £ 250 million through a placement of shares to finance new acquisitions.
Earlier this week, the company snapped up 100% of the fleet of 161 songs by former Fleetwood guitarist Mac Lindsey Buckingham, as well as 50% of all songs not yet released. He also acquired royalties from the world producer of 259 songs from Jimmy Iovine, who produced artists like Bruce Springsteen and Patti Smith before founding Beats Electronics, which Apple AAPL,
purchased in 2014 for $ 3 billion.
Hipgnosis has already spent more than £ 1 billion acquiring rights to some 60,000 songs, including those by Blondie, Barry Manilow and Pretenders’ Chrissie Hynde, among others.