Hipgnosis Songs has taken over 42 catalogs that consist of more than 33,000 songs from Kobalt Music Copyrights S.à.r.l. The total consideration is worth $323 million. Hipgnosis has planned to fund this transaction with a combination of borrowings and equity as it recently expanded its credit facilities. They have announced that their net publishers’ share has grown to a good 6%, that is $18 million last year (2019). They have said that overall it translates towards 18.3 times net publishers multiple.
The music catalog consists of songs by popular and loved artists. Sources suggest that more than 1,500 songwriters have written the 33,000 songs acquired. Those famous artists include Savan Kotecha, Walter Afanasieff, Christina Perri, Evan Bogart, Enrique Iglesias, LunchMoney Lewis, J-Kash, Dierks Bentley, John Simon Neil / Biffy Clyro, Eman Kyriakou, Mac Powell / Third Day, David Gray, Mark Batson, and Antonina Armato / Rock Mafia, Tim James, and Stefan Johnson.
The deal includes acquiring super hit songs such as “All I Want For Christmas Is You,” “One Sweet Day,” “Go Your Own Way,” “Higher Love,” “The Chain,” “Roar,” “Hero,” “Teenage Dream,” “Bailando,” “Can’t Find My Way Home,” “Gimme Some Lovin’,” “Never Give Up on a Good Thing,” “Let It Go,” “Bad to the Bone,” “Love Shack,” “In Da Club,” “Halo,” “Don’t You Worry Child,” “Hot In Herre” by Nelly, “Sorry” and “Sugar.” These songs have received huge popularity, especially amongst the youth.
This year has been quite a big step forward for Hipgnosis. Earlier, they acquired the Big Deal music publishing company as well as its catalog. They acquire brilliant content by Ammar Malik, Richie Sambora, Brian Higgins, L.A. Reid. Mark Ronson, RedOne, Barry Manilow, Rodney Jerkins, Rza, Nikki Six, Ernest Dion Wilson, AKA No I.D., Chrissie Hynde, Debbie Harry, and Chris Stein, However, the biggest success for Hipgnosis this year is the acquisition of 42 catalogs from the Kobalt Capital Music.
The founder of Hipgnosis Songs Fund Limited, Merck Mercuriadis, believes that they have a special relationship with Kobalt Music since its early operation stages. Merck has expressed that due to their close relationship, it was expected for them to make such a deal to contribute to Kobalt Capitals’ inaugural fund. He also believes that the catalogs they have acquired are unique because they are important culturally. The songs have already managed to capture millions of hearts. Hipgnosis is determined to protect the artist’s legacies and increase their songs’ reach by taking it to greater heights.
The Chief Executive Officer of Kobalt Capital Limited, Johan Ahlmstrom, believes that they have taken a good decision to sell the 42 catalogs portfolio to Hipgnosis as it will be a good return on investment for the company. The Chief Executive Officer is also looking forward to being active during any future acquisitions.