The strategic plan was very clear immediately following Blackstone's $1.584 billion acquisition of Hipgnosis Songs Fund. Blackstone did not waste any time in merging HSF's 40,000-song catalog with privately held Hipgnosis Songs Capital, operating as Hipgnosis Songs Assets. The portfolio includes some high-profile copyrights connected to Leonard Cohen, Justin Timberlake, Justin Bieber, Nelly Furtado, and Kenny Chesney.
What was reportedly accomplished in just a few days between the two parties as part of a business merger was called into question, however, by what the future held for Hipgnosis Song Management, the investment adviser to both Hipgnosis' private fund and the formerly public Hipgnosis Songs Fund.
Speculation about HSM's future began to swirl after a July 2 announcement the firm's founder, Merck Mercuriadis, would be stepping down as Chairman six years after establishing the company. While he leaves behind a seasoned leadership team, including CEO Ben Katovsky, CFO Dan Pounder, Jon Baker and Sara Lord, some music industry observers have nonetheless speculated that Blackstone might downsize HSM to take a more low-key approach in music rights management.
Contrary to such expectations, HSM is currently on a hiring spree—an indication of expansion rather than contraction. The company is currently recruiting several London-based roles, including a Product Manager for Creative/Audience Development, a VP of Licensing Management, Junior Data Engineer, and Team Coordinator. As a matter of fact, these steps prove that HSM is getting ready for aggressive growth rather than shrinking its operations.
Also, it is said that Hipgnosis has begun preliminary talks with some of the largest music publishers for a possible administration deal for publishing. So far, Hipgnosis has relied on internal administration via its in-house team at Hipgnosis Songs Group as it manages its portfolio of U.S. songs. However, in its efforts to secure the acquisition of HSF, Blackstone had hinted at the prospect of selling off or restructuring Hipgnosis Songs Group. A new publishing administration deal with one of the major music companies could be only a start to major ramifications for the leading players in the industry.
In the year to March 2023, revenues at Hipgnosis Songs Fund came in at $147.2 million. That figure doesn't include Blackstone's privately-held roster of songs, including those by Leonard Cohen and Justin Bieber, to name just two. All these developments underway suggest that a Hipgnosis under Blackstone ownership is set to get more central in the global music business and, finally, perhaps redefine how music rights management works.
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