The Biggest Song Deal of 2020 is here! Hipgnosis Songs Fund Ltd continues its acquisition binge amidst this pandemic. It is in its process to acquire the Kobalt Music Copyrights Fund. These copyrights include song catalogs of reputed writers who have made name and fame in this industry over the years. Some of the writers include Lindsey Buckingham, 50 cents, Steve Winwood, the B52s, Nelly, Bonnie Mckee, and Skrillex, among others.
In total, the deal consists of 42 catalogs. These 42 catalogs have 33,000 songs in total. These 32000 songs have been written by over one thousand and five hundred songwriters. Hipgnosis Songs Fund Ltd has said that it is paying $323 million for the deal.
It is funding the acquisition through a combination of borrowings and equity from its recently expanded revolving credit facility. The company has also stated that the Net Publishers Share (NPS) grew 6% to $18 Million in 2019. In other words, this means 18.3 times the NPS multiple.
Vital Inputs Regarding This $323 Million Song Deal
Let’s dive deep into the financial metrics leading to this 33,000 Songs Deal. The Hipgnosis Songs Fund Ltd is already listed on the London Stock Exchange. It raised some £420 Million in two tranches of equity nature: the first tranche raised £236.2 Million ($293.4 Million) in July. The second tranche raised £190 Million ($245.4 Million) on September 21. The company has also engaged in expanding its capacity and changing the currency of its revolver from £150M to $400M.
Now, let’s see what the 42 catalogs contain. The contents of the catalog are sure to delight the song lovers. You get songs such as “Go Your Own Way” and “The Charm” by Fleetwood Mac. This beautiful bouquet of songs also comprises “All I Want for Christmas Is You” and “One Sweet Day,” featuring Boyz II Men by Mariah Carey.
The list of the songs in these catalogs is endless. These include “Hero” and “Bailando,” written by Enrique Iglesias. Songs that spark life and imagination to the multitude of lovers also form a part of this music catalog. They include “Higher Love” by Steve Winwood, “Roar” and “Teenage Dream” by Kate Perry.
People may come, and people may go, but life shall go on forever. Songs can add this flavor to our life. Such songs include “Grimme Some Lovin” by the Spencer Davis Group, “Can’t Find My Way Home” by Blind Faith, and “Never Give Up on a Good Thing” by George Benson.
Some songs electrify the atmosphere like no other. Such songs also form a part of this catalog. These include “Bad To The Bone” by George Thorogood, “Halo” by Beyoncé, and “Love Shack” by the B-52Ss.
Some songs in these 42 catalogs belong to mixed genres. They include “In Da Club” by 50 cents, “Don’t You Worry Child” by Swedish House Mafia, and “Hot In Herre” by Nelly. You can also get songs like “Sugar” by Maroon 5 and “Let It Go” by Demi Lovato from Disney’s Frozen Soundtrack.
Some More Vital Inputs On This $323 Million Song Deal
The constituents of the catalog are endless. It includes songs of such songwriters whose name speaks volumes of their work. Some of them include Walter Afanasieff, Savan Kotecha, Evan Bogart, and J-Kash. It also includes the publishing catalog of Canadian Music Company Nettwerk and has 18000 songs in total. It makes up more than half of the acquired Kobalt catalog.
Now, let’s see what Hipgnosis itself consider the catalogs they have acquired. Its founder Merck Mercuriridis has referred to the catalogs as a “wonderful portfolio of proven songs” in a statement. He has also added: “They are both small catalogs of great cultural importance and delve into the rich history of the music itself.”