Over the weekend, private equity firm Blackstone made a $1.5 billion bid to acquire Hipgnosis Songs Fund. According to the company’s website, Hipgnosis Songs Fund features 146 catalogs, 65,413 songs, and 163 Grammy-winning songs. These songs include hits from 50 Cent, Blondie, The Chainsmokers, Chromeo, Enrique Iglesias, Justin Bieber, Justin Timberlake, Kenny Chesney, Mark Ronson, Journey, Neil Young, Nelly, Pusha T, Red Hot Chili Peppers, and Shakira.
Blackstone proposed $1.24 per share as part of an all-cash offer, an 8.7% premium from the company’s share price the previous day. This offer is also higher than Concord’s $1.4 billion bid.
Blackstone owns two other Hipgnosis entities: Hipgnosis Songs Capital (a music assets fund) and Hipgnosis Song Management (a music investment advisor).
On April 18, the board revealed in a filing with the London Stock Exchange that it would agree to a $1.402 billion takeover from Concord with unanimous support from the directors. However, a majority of stockholders representing at least 75% of voting rights for the deal would have to agree. Blackstone’s Hipgnosis Song Management has the right to outbid Concord and other bidders based on an option in a contract when the fund went public several years ago.
Hipgnosis Songs Fund was originally founded by Merck Mercuriadis, who has managed many renowned artists, including Beyonce and Elton John.
In response to Blackstone’s bid, Hipgnosis Songs Fund said that it has indicated to the private equity firm that the proposal is at a value that they would be “minded to recommend” to shareholders. Hipgnosis Songs Fund is still backing the Concord bid, and there can be “no certainty that a firm offer” would be made for the company by Blackstone.
Last year, Concord acquired Round Hill Music Royalty Fund Ltd for $468.8 million.
