Connect with us

Hi, what are you looking for?


Hipgnosis Song Fund delays financial results over concerns songs are being under-valued

Hipgnosis Song Fund – which owns the rights to tracks by world-famous artists – has postponed sharing its financial results due to concerns that songs are being undervalued.

The music fund was set up and launched by Chic legend Nile Rodgers and Merck Mercuriadis – former manager of acts including Elton John and Beyoncé – and was set to share its half-year results today (December 19).

However, it has confirmed that it will be delaying the publication of the results due to concerns that music catalogues and songs are not being valued high enough amid a sale.

As reported by The Independent, the UK firm decided to sell just under 30 music catalogues to the sister fund, backed by investment giant Blackstone in September this year.

The deal valued the assets at about $418million (£360million), however, this number was down by nearly a quarter compared to the valuation it was given back in March.

Merck Mercuriadis, Founder & CEO of Hipgnosis Songs LTD and Hipgnosis Song Management the featured keynote of the Canadian Music Week Summit. CREDIT: Robert Okine/Getty Images

It came as the company revealed it did not receive any better offers as interested parties “could not justify” a higher price, and also sold 20,000 “non-core” songs for about $23million (£20 million) – nearly a 15 per cent discount on a September valuation.

Amid the potential sale, Hipgnosis – which spent $1billion (£720m) acquiring artists’ back catalogues in 2021 – stated that the valuation received from an independent valuer is “materially higher than the valuation implied by proposed and recent transactions in the sector”.

As confirmed by the outlet, a spokesperson for Hipgnosis has said that the company has sought advice from its investment adviser, Hipgnosis Songs Management, which gave the board “concerns as to the valuation of the company’s assets in its interim results”.

It was also reported that the fund launched a strategic review two months ago, which could potentially lead to the replacement of founder and chief executive Mercuriadis.

The half-year results are now expected to be published by December 31.

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

You May Also Like


Idles frontman Joe Talbot has become the latest musician to appear on CBeebies Bedtime Stories – check out the video below. Talbot read the...


Machine Gun Kelly’s tattoo collection just got larger. The “Bloody Valentine” rocker took to Instagram on Tuesday (Feb. 20) to show off his new...


Sophie Ellis-Bextor has announced details of a US tour, following the new-found success of ‘Murder On The Dancefloor’. The announcement that the British singer...


Ashlee Simpson has the benefit of hindsight when it comes to her infamous 2004 appearance on Saturday Night Live. Speaking on the Broad Ideas...