By Chris Cooke | Published on Wednesday 25 January 2023
Hipgnosis has confirmed that its much rumoured deal with Justin Bieber is now in the bag. Under the deal, worth a reported $200 million, Hipgnosis acquires all of the star’s existing song rights, as well as artist royalty and remuneration rights in relation to his recordings.
If you’re interested in the technicalities of who did the deal and where the cash came from to fund it, the whole thing was negotiated by Hipgnosis Song Management on behalf of Hipgnosis Songs Capital, which is Hipgnosis’s partnership with investment outfit Blackstone.
Although it’s an extensive deal – with Hipgnosis also securing the so called writer’s share of song income – the price tag is particularly impressive given that Bieber is still only 28 years old.
Most of the previous mega-bucks rights acquisition deals have involved older musicians with much longer careers and therefore catalogues that contain plenty of songs with proven longevity in terms of popularity and income generation.
Although, as Hipgnosis was keen to point out in its statement confirming the deal, Bieber has impressive stats to accompany the impressive price tag. Bieber’s songs “have been streamed over 32 billion times on Spotify alone where he has 82 million monthly listeners”, it declared.
Hipgnosis chief Merck Mercuriadis adds: “The impact of Justin Bieber on global culture over the last fourteen years has truly been remarkable. At only 28 years of age, he is one of a handful of defining artists of the streaming era that has revitalised the entire music industry, taking a loyal and worldwide audience with him on a journey from teen phenomenon to culturally important artist”.
Then noting again Bieber’s age and achievements, before bigging up his long-term manager Scooter Braun, Mercuriadis goes on: “This acquisition ranks among the biggest deals ever made for an artist under the age of 70, such is the power of this incredible catalogue. Scooter Braun has helped him build a magnificent catalogue, and it’s a pleasure to welcome Justin and his incredible songs and recordings to the Hipgnosis family”.
Braun himself says of the big deal: “I want to thank Merck and his entire Hipgnosis team and all of our partners involved for working so hard to make this historic deal happen. When Justin made the decision to make a catalogue deal we quickly found the best partner to preserve and grow this amazing legacy was Merck and Hipgnosis”.
“For over a decade now Justin Bieber has entertained us and moved us with some of the biggest songs in the world”, he continues.
“I’m so proud of him and all those involved over the years in helping amass this incredible body of work. Justin is truly a once in a generation artist and that is reflected and acknowledged by the magnitude of this deal. For fifteen years I have been grateful to witness this journey and today I am happy for all those involved. Justin’s greatness is just beginning”.
So well done to the Biebs. And now – just for old times’ sake – here’s exclusive footage of him leaving the building after signing that deal. Maybe.
READ MORE ABOUT: Hipgnosis Songs Fund | Justin Bieber
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