Jem Aswad Executive Editor, Music The troubled Hipgnosis Songs Fund, whose former CEO Merck Mercuriadis drove up the value of music catalogs with more than $3 billion in acquisitions before overspending and problematic management caused the company to lose more than half of its value, has agreed to a $1.4 billion sales to Nashville-based Concord, the companies announced in the early hours of Thursday.
The catalogs involved include assets by Neil Young, the Red Hot Chili Peppers, Shakira and others. The news was first reported by Music Business Worldwide.
The sales takes place after months of upheaval at Hipgnosis, which had launched a strategic review last year after a revolt by shareholders over a planned catalog sell-off and other business plans.
Hipgnosis’ investors will get $1.16 per share in cash, representing a premium of about 32% to Wednesday’s closing price, according to Reuters.
Read more on variety.com