Hipgnosis stock hits record low as value of music portfolio plummets

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Sky News), with the brand owning the rights to music by Shakira, Ed Sheeran, Red Hot Chili Peppers, Neil Young and more.It also comes after the value of the portfolio dropped, and the company reportedly halted investor payouts “for the foreseeable future”.The report – carried out by its lead adviser Shot Tower – showed that the value had declined by at least a fifth on that reported by Hipgnosis in September 2023.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.

These included concerns around valuations, board and legal battles and a shareholder revolt against a catalogue sale deal.Last December, Hipgnosis was set to share its half-year results, but said it was delaying the publication of the results due to concerns that music catalogues and songs are not being valued high enough.The pause was set to last between mid-December and the end of March, and yesterday (March 4) it was confirmed that the pause would continue.As highlighted by Sky News, approximately 65 per cent of Hipgnosis’s royalties come as a result of passive publishing, performance and recorded music income streams.