NEW YORK – Pop juggernaut Justin Bieber has sold his music publishing and recording catalogue shares to the Blackstone-backed Hipgnosis Songs Capital for US$200 million (S$264 million), the company said on Tuesday – marking the industry’s latest blockbuster rights deal.
The sale has been rumoured for weeks and sees the 28-year-old join a who’s who of artistes who have cashed out recently on their catalogues.
Hipgnosis did not publicly disclose terms of the deal, but a source close to the matter told AFP it was worth around US$200 million.
Contemporary stars including Justin Timberlake and Shakira have sold large stakes in their work – both also struck deals with Hipgnosis – but the move has mostly been seen among legacy artistes like Bob Dylan and Bruce Springsteen.
The staggering sums – Springsteen’s catalogue went to Sony for a reported half a billion dollars – are considered safe bets both for older artistes getting their finances in order and investors who can count on consistent returns from time-tested music and the viability of streaming.
Younger catalogues are seen as riskier territory, but Bieber is one of the best-selling artistes of all time, and now Hipgnosis has his share in some of the 21st-century’s biggest hits including Baby and Sorry.
Hipgnosis Songs Capital is a US$1 billion venture between financial giant Blackstone and the British Hipgnosis Song Management.
According to the deal, Hipgnosis has acquired Bieber’s publishing copyrights to his 290-song back catalogue – all of his music released prior to Dec 31, 2021 – including his writer’s share.
It also includes his artiste rights to his lucrative master recordings as well as neighbouring rights royalties – a right that sees its owner receive a payment every time a song is played publicly.
But while Hipgnosis will receive the revenues, Bieber’s long-time home Universal will continue to administer the catalogue, Variety reported.
After the Canada native was discovered on YouTube as a teen, Bieber skyrocketed to global fame, selling more than 150 million records.
He has charted eight No. 1 records on Billboard’s top albums list, and his songs have streamed on Spotify alone more than 32 billion times.
“The impact of Justin Bieber on global culture over the last 14 years has truly been remarkable,” said Hipgnosis chief Merck Mercuriadis, a long-time music industry executive, in a statement.
“At only 28 years of age, he is one of a handful of defining artistes 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 artiste.”
Bieber’s health has suffered recently, with the star going on an indefinite touring hiatus after he revealed he had been diagnosed with Ramsay Hunt Syndrome, a rare complication of shingles that for him caused partial facial paralysis.