Blackstone’s new bid for Hipgnosis receives positive reception

Blackstone, the American private equity giant, is gearing up to make a fresh takeover offer for the company that owns the music catalogues of popular artists like Shakira and the Red Hot Chili Peppers. The bid, expected to be submitted as early as Monday, will surpass the $1.25-a-share offer recommended by Hipgnosis Songs Fund’s board last Thursday.

This move comes amidst an escalating bidding war between Blackstone and Concord Music, a larger rival backed by Apollo Global Management. The battle for control over some of the music industry’s most iconic assets, including songs by Blondie and the Kaiser Chiefs, underscores the high stakes involved.

Hipgnosis Songs Fund has been embroiled in turmoil, with shareholders rejecting the board’s plans last October and a subsequent review revealing discrepancies in the valuation of its assets. Blackstone, which already owns a majority stake in the company’s investment adviser, is now eyeing a takeover that could provide value for Hipgnosis shareholders.

The founder of Hipgnosis, Merck Mercuriadis, who previously managed artists like Beyonce and Elton John, struck a deal with Blackstone in 2018 to transform music royalties into a mainstream asset class. The outcome of the bidding war will not only determine the future ownership of these valuable music catalogues but also shed light on the ongoing relationship between Blackstone and Mercuriadis.

As the deadline for the fresh offer approaches, industry watchers are eagerly anticipating the next move in this high-stakes battle for control over some of the music industry’s most prized assets. Stay tuned for further developments as the bidding war intensifies.