Bidding war for Hipgnosis escalates with Blackstone striking $1.6billion deal

nme.com:

Shakira, Ed Sheeran, Red Hot Chili Peppers, Neil Young and more. The offer put forward by Concord was $1.25 per share (£1).Blackstone has already acquired the rights to songs by Justin Bieber and Justin Timberlake, and this current deal will see more than 65,000 more tracks added to its catalogue.As highlighted by Reuters, Blackstone has also invested in U.S.

performance rights organisation SESAC – whose affiliates include rock veteran Bob Dylan and 16-time Grammy winner Adele.Its offer of $1.6billion was made today (April 29), and comes just days after Concord outbid the firm by 10 cents, and won Hipgnosis’s board backing for the deal.

Hipgnosis has since withdrawn its recommendation for the offer and followed through with the offer from Blackstone.“We are delighted that, following competitive interests in acquiring Hipgnosis, our investors now have a chance to immediately realise their holding at an increased premium,” said Hipgnosis Chairman Robert Naylor in a new statement (via Reuters).Blackstone is a majority shareholder in Hipgnosis’ investment adviser, HSM.

The adviser manages artists and songwriters for the fund, as well as holding a call option to make a higher offer for Hipgnosis’ portfolio if their advisory agreement were to be terminated.The news of a deal comes after the music fund – set up and launched by Chic legend Nile Rodgers and Merck Mercuriadis (former manager of Elton John and Beyoncé) – was mired by financial troubles last year.