Veteran rock star Neil Young has sold half of the rights to his song catalog to SONG’s Hipgnosis Song Fund,
as the UK publishing house seems to be picking up on the rise in music values amid the popularity of streaming services.
Under the terms of the agreement, announced on Wednesday, Hipgnosis, listed on FTSE 250, takes a 50% stake in the portfolio of the 75-year-old Canadian singer, with 1,180 songs, which include “Heart of Gold”, “Rockin ‘in the free world ”And“ The Cinnamon Girl ”.
Hipgnosis did not disclose the value of the transaction, which is estimated to be priced at $ 150 million, according to Music Business Worldwide.
The deal comes less than a month after Universal Music Publishing Group signed a historic deal to buy Bob Dylan’s entire catalog of compositions, including classical pieces such as “Blowin ‘in the Wind” and “The Times They Are A- Changin ‘”for $ 300 million. Just a few days earlier, Fleetwood Mac vocalist and songwriter Stevie Nicks sold an 80% stake in his music to Primary Wave for about $ 80 million.
Read: 5 reasons why musicians like Bob Dylan and Stevie Nicks are selling their song catalogs right now
Music consumption has increased due to streaming platforms such as Spotify SPOT,
and Apple Music, which allowed listeners to rediscover and play some of their favorite songs from years past. Composers’ catalogs get selling prices 10 to 18 times annual royalties, compared to 8 to 13 times in previous years, according to The Wall Street Journal.
Founded by music industry veteran Merck Mercuriadis, which previously managed artists including Elton John, Beyoncé and Morrissey, Hipgnosis is listed on the London Stock Exchange in 2018 and now orders a market cap of nearly $ 1.3 billion.
The publishing house invests in songs and music intellectual property rights and generates revenue by turning music royalties into a steady stream of revenue, earning money every time one of its songs is played on the radio or featured in a commercial or television movie.
“This is a business that changes Hipgnosis forever,” Mercuriadis said as it announced the deal Wednesday. “We built Hipgnosis to be a company that Neil would like to be a part of. We have a common integrity, ethos and passion, born from a belief in music and in these important songs “, he added.
Young, who became famous in the 1960s and 1970s, released nearly 50 studio albums and more than 20 live albums, of which 18 are gold certified, seven are platinum and three are multiplatinum.
In December, Young dropped his lawsuit against US President Donald Trump’s campaign to sing two of his songs at unauthorized campaign rallies.
Read: Artists make gold by selling their music rights. How can investors cash in.
Shares of Hipgnosis, which have already risen almost 3% so far, traded 0.28% lower in London on Wednesday.
The publishing house has been in full swing since September, after raising 250 million pounds through a placement of shares to finance subsequent acquisitions.
Earlier this week, the company took over 100% of the 161-song catalog of former Fleetwood guitarist Mac Lindsey Buckingham, plus 50% of any song that hasn’t been released yet. It also acquired royalties from the world’s 259-song producer Jimmy Iovine, who produced artists, including Bruce Springsteen and Patti Smith, before founding Beats Electronics, which Apple AAPL,
bought in 2014 for $ 3 billion.
Hipgnosis has now spent more than £ 1 billion acquiring rights to nearly 60,000 songs, including Blondie, Barry Manilow and Chrissie Hynde from suitors, among others.