Hipgnosis Songs (SONG) has acquired a portfolio that as at 30 September 2020, comprises 42 catalogues from Kobalt Music Copyrights S.à.r.l. (an investment fund owned by family offices and institutional investors and advised by Kobalt Capital), for a total consideration of $322.9m. The announcement notes that the consideration, net of right to income, represents a blended acquisition multiple of 18.3x historic annual income and was funded with the net proceeds from the SONG’s September equity fundraising, in addition to the fund’s existing leverage facility.
In total, the acquired portfolio’s 42 catalogues include over 33,000 songs written by over 1,500 songwriters across a broad range of genres including pop, rock, EDM, hip hop, jazz and country. The portfolio will generate a highly stable and predictable income stream, which grew by 6% to $18m in 2019 as well as increase the company’s diversification.
‘The portfolio includes some of the most successful, influential and timeless hit songs of the last 60 years’
The portfolio includes some of the most successful, influential and timeless hit songs of the last 60 years including ‘Go Your Own Way’ and ‘The Chain’ by Fleetwood Mac, ‘All I Want For Christmas Is You‘ and ‘One Sweet Day‘ featuring Boyz II Men by Mariah Carey, ‘Bailando‘ and ‘Hero‘ by Enrique Iglesias, ‘Higher Love‘ by Steve Winwood, ‘Roar‘ and ‘Teenage Dream‘ by Katy Perry, ‘Gimme Some Lovin‘ by The Spencer Davis Group, ‘Can’t Find My Way Home‘ by Blind Faith, ‘Never Give Up on a Good Thing‘ by George Benson, ‘Bad to the Bone‘ by George Thorogood, ‘Halo‘ by Beyoncé, ‘Love Shack‘ by the B-52s, ‘In Da Club‘ by 50 Cent, ‘Sorry‘ by Justin Bieber, ‘Don’t You Worry Child‘ by Swedish House Mafia, ‘Hot In Herre’ by Nelly, ‘Sugar‘ by Maroon 5 and ‘Let It Go‘ by Demi Lovato from Disney’s Frozen Soundtrack.
The portfolio includes songs made famous by 10,000 Maniacs, 2Pac, 50 Cent, Alan Jackson, Alicia Keys, Andrea Bocelli, Anitta, Anthony Hamilton, Avicii, B-52s, Backstreet Boys, Barbra Streisand, Bebe Rexha, Beyoncé, Biffy Clyro, Big & Rich, Birdy, Blind Faith, Boyz II Men, Britney Spears, Celine Dion, Charli XCX, Chris Brown, Christina Perri, Damian Marley, Dave Matthews Band, David Gray, Demi Lovato, Destiny’s Child, Dierks Bentley, Dua Lipa, Ellie Goulding, Eminem, Enrique Iglesias, Eric Prydz, Fleetwood Mac, Flo-Rida, Florida Georgia Line, George Benson, George Thorogood, Gladys Knight, Halsey, Iggy Azalea, Jason Aldean, Jason Derulo, Jennifer Lopez, Jimmy Buffett, Josh Groban, Juicy J, Justin Bieber, Katy Perry, Keith Urban, Kelly Clarkson, Kelly Rowland, Killswitch Engage, Kylie Minogue, Lauv, LeAnn Rimes, Lindsey Buckingham, LunchMoney Lewis, M.I.A., Marc Anthony, Maren Morris, Mariah Carey, Maroon 5, Mary J Blige, Massive Attack, Matchbox Twenty, Matt & Kim, Meek Mill, Meghan Trainor, MF Doom, Michael Bolton, Miley Cyrus, Moses Sumney, Natalie Merchant, Nelly, Nicki Minaj, New Kids On The Block, Olafur Arnalds, One Direction, P!nk, Paloma Faith, Panic! At The Disco, Papa Roach, Paul Anka, Perfume Genius, P!ink, Pitbull, Puff Daddy, Rick Ross, Ricky Martin, Rita Ora, SZA, Santana, Sawyer Brown, Seal, Selena Gomez, Sigma, Sigala, Sinead O’ Connor, Skrillex, Sky Ferreira, Spencer Davis Group, Steve Aoki, Steve Winwood, Sum 41, Super Furry Animals, Swedish House Mafia, T-Pain, T.I., Taio Cruz, Taylor Swift, Teenage Fanclub, The Editors, The Outfield, The Wombats, Third Day, Tiesto, Timbaland, Tim McGraw, Tina Arena, Tinie Tempah, Toby Keith, Tom Jones, Tom Walker, Toto, Traffic, Trey Songz, Trivium, Troye Sivan, Ty Dolla $ign, Usher, Waka Flocka Flame, Weezer, Westlife, Whitney Houston, Young The Giant, Zara Larsson, Zedd.
Merck Mercuriadis, the founder of SONG and its investment advisor, The Family (Music) Limited, said: “SONG has had a special relationship with Kobalt Music since its inception so it’s only natural that we would eventually make a deal like this for Kobalt Capital’s inaugural fund. Willard, Johan and Laurent have curated a wonderful portfolio of proven songs that is incomparable with almost anything other than the SONG catalogue which it complements beautifully. They are both small catalogues with songs of great cultural importance and an incredibly high degree of success within them from amongst the most important songwriters and artists in music’s rich history. I’m incredibly proud to welcome the iconic songs of Steve Winwood, Lindsey Buckingham, Bonnie McKee, Walter Afanasieff, George Benson, Enrique Iglesias, the B-52s, 50 Cent, Christina Perri, George Thorogood, Skrillex, Evan Bogart, J-Kash, Dierks Bentley, Savan Kotecha, LunchMoney Lewis, Eman Kyriakou, John Rich, Simon Neil / Biffy Clyro, Lateral, Mac Powell / Third Day, Mark Batson, David Gray, Tim James and Antonina Armato / Rock Mafia , Stefan Johnson and so many other incredible songwriters to the Hipgnosis Family. They’ve written iconic songs for Fleetwood Mac, Steve Winwood, Traffic, Blind Faith, Mariah Carey, Eminem, George Benson, B-52s, 50 Cent, Katy Perry, Beyoncé, One Direction, Big & Rich, Maroon 5, Dierks Bentley and so many more. These special songs that have had such extraordinary success have a lot more joy to bring the world and we look forward to working with these phenomenal creators in taking their songs to new heights while protecting their legacies. Thank you to Willard, Johan and Laurent and we look forward to working with Kobalt Music as our administrator on these important works.”
‘SONG’s total portfolio comprises 117 catalogues and 57,000 songs’
Following the acquisition, SONG’s total portfolio comprises 117 catalogues, and 57,000 songs, with an aggregate acquisition value of £1.18bn representing a blended acquisition multiple of 14.76x historic annual income, net of right to income.
SONG: Hipgnosis Songs buys 42 catalogues with over 33,000 songs for $322.9m