The report says that Justin Bieber is close to a deal to sell his music rights to Hipgnosis Songs Capital, backed by Blackstone, for around $200 million. Hits and the Wall Street Journal were the first to report the news. It had been talked about for weeks.’
Justin Bieber’s Deal To Sell His Music Rights For Around $200 Million
The deal, which sources say isn’t done yet, includes Justin Bieber‘s shares of his publishing and recorded-music catalogs. Sources tell Variety that even if the deal goes through, Universal will still be in charge of and own those things.
Variety asked Bieber and Hipgnosis for comments, but their representatives either didn’t answer or didn’t say anything.
The news comes at a hard time for the singer. He put off the rest of his “Justice” tour a few weeks ago until “next year,” but he didn’t say when. The tour was supposed to start in 2020, but it has been put off or delayed several times. The first time was because of the pandemic, and the most recent time was because of Ramsay Hunt syndrome, a rare virus that paralyzed his face. It finally came out in March and covered most of North America, but he had to move the rest of the dates because he was having trouble with his illness.
It also comes when the once-hot catalog market is cooling down. The market has become less appealing as prices and interest rates have gone up, and taxes on capital gains have gone up.
Justin Bieber and Katy Perry have reportedly been shopping deals to sell their publishing interest and recording revenue.
Bieber’s deal is about to close for a possible $200M, while Katy’s publishing/recording share is valued at $80M-100M.
— Pop Crave (@PopCrave) December 21, 2022
Even though Bieber’s catalog includes some of his hits from the past 15 years, it is less of a sure thing than the catalogs of Genesis and Phil Collins, which were reportedly sold for $300 million earlier this year.
But some companies, like Hipgnosis, are starting to use newer catalogs. The Journal says that the Bieber deal would be Hipgnosis’s biggest purchase of music rights to date. The company bought the rights to Justin Timberlake’s songs earlier this year in a deal that was said to be worth just over $100 million. Timberlake’s songs are a few years older than Bieber’s. People say that Bieber’s share of hits like “Sorry,” “Love Yourself,” and even older songs like “Baby” isn’t that big, but these songs are still huge around the world and define an era for many.
On the other hand, Hipgnosis also bought Leonard Cohen’s catalog, which has many classic songs over 50 years old.
The market peaked in 2020 and last year when Bob Dylan and Bruce Springsteen sold their catalogs for middle-nine-figure sums.
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