Concord to buy Hipgnosis in US$1.4 billion deal
Concord, a music rights investor, has agreed to buy Hipgnosis Songs Fund in a deal that values the song catalogue company at about US$1.4 billion.
The bidders have offered Hipgnosis investors US$1.16 per share in cash, representing a premium of 32 per cent from the last closing price, the companies said in a statement on Thursday (Apr 18). Hipgnosis’ board has unanimously agreed to the deal, and said in the statement that it’s unlikely that the share price will increase to reflect the company’s performance because of “numerous company-specific and certain market issues.”
Hipgnosis has struggled to recoup its investment on music rights after buying up song catalogues for artists including the Red Hot Chili Peppers, Journey and Neil Young. The company launched a strategic review last year and hired music rights specialist Shot Tower.
The company’s shares have declined 2.1 per cent this year and closed at 70.5 pence in London trading on Wednesday.
Concord, whose legal name is Alchemy Copyrights, buys up music rights and companies. Its catalogue spans theatre, recorded music, and publishing and includes artists such as Creedence Clearwater Revival and Iggy Pop. BLOOMBERG
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