Hipgnosis Songs Capital has finalized its deal to purchase 100% of Justin Bieber’s publishing company and artist licenses from his master recordings and related rights, Hipgnosis has confirmed. The deal was priced at just over $200 million, according to a source familiar with the situation, making this the largest rights sale for an artist of Bieber’s generation. It’s also Hipgnosis’ largest acquisition to date, covering all 290 tracks in Bieber’s catalog released before December 31, 2021, including his latest album, Justice (2021).
Billboard originally reported in December that a $200+ million Bieber deal was in the works amid the founder/CEO Merck Mercuriadis‘ Efforts to “close about $500 million worth of deals” between mid-November and mid-December. Though Mercuriadis didn’t say what the deals were at the time, the Bieber acquisition appears to be part of that disclosure.
After a hot 2021 for catalog sales, with deals with icons such as Bruce Springsteen and Paul Simon making headlines and some of the world’s biggest private equity players including Blackstone, KKR and Apollo Global Management all participating in the market, interest rates rose and changes in currency exchanges cooled the sector in 2022. Nonetheless, deals were made. Last year Justin Timberlake, Leonard Cohen, Nile Rodgers, Kenny Chesney, Neil Young and Nelly Furtado sold some of their rights to Hipgnosis. Sting, David Bowie’s estate, Phil Collins and his Genesis bandmates, Future, Frank Zappa’s estate, and Neil Diamond also sold certain assets to investors in 2022.
Typically, newer catalogs like Bieber’s are considered riskier investments since they don’t have as much history to show staying power. This means they often sell for lower prices than classic acts. However, Bieber’s success has been undeniable since 2009’s debut album My World and 2010’s follow-up My World 2.0, the latter of which topped the Billboard 200 and contained the hit single Baby. In all, Bieber has charted eight No. 1 albums on the Billboard 200, including his most recent full-length studio release, 2021’s Justice.
On the Billboard Hot 100, Bieber has accumulated 26 top 10s, including eight No. 1s. According to Luminate, his albums have generated 28 million album equivalent units in the United States, of which 13.2 million are from traditional album sales. His collected songs, mostly billed to him, have generated 16.6 billion official on-demand streams in the United States.
Although Bieber’s share of artist royalties for his masters is now passed on to Hipgnosis, UMG will continue to own the recorded music copyrights to his works in perpetuity.
“Justin Bieber’s impact on global culture over the past 14 years has been truly remarkable,” he said Mercuriadis in a statement. “At just 28 years old, he is one of a handful of defining artists of the streaming era that revitalized the entire music industry and has taken a loyal and global audience on a journey from teenage phenomenon to culturally significant artist. This acquisition ranks among the largest deals ever made for an artist under 70, such is the strength of its incredible catalog, which has nearly 82 million monthly listeners and over 30 billion streams on Spotify alone. Scooter Braun has helped him build a great catalog and it’s a pleasure to welcome Justin and his incredible songs and recordings to the Hipgnosis family.”
“I would like to thank Merck and the entire Hipgnosis team, as well as all of our partners involved, for working so hard to make this historic deal a reality,” he says Scooter Brown, Bieber’s manager for 15 years, founder of SB Projects and CEO of HYBE America. “When Justin made the decision to enter into a catalog deal, we quickly found the best partner to preserve and grow this amazing legacy: Merck and Hipgnosis. For over a decade Justin Bieber has entertained and moved us with some of the greatest songs on earth. I am so proud of him and everyone who has been involved in bringing this incredible work together over the years. Justin is truly a one-of-a-kind artist and that is reflected and recognized by the size of this deal. For 15 years I have been grateful to be part of this journey and today I am happy for everyone involved. Justin’s greatness is just beginning.”
Bieber was represented by Braun, David Bolno from NKSFB, Aaron Rosenberg and Audrey Benoulid by Myman Greenspan Fox and Michael Rhodes by Cooley.
Hipgnosis Songs Capital was represented by Wilhelm Leibowitz the William R. Leibowitz Law Group, Seth Traxler and Rory Wellever by Kirkland & Ellis LLP and Robert Fowler and Lisa Ong by HW Fischer.