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Neil Young achieved the heart of gold by selling 50% of the publishing house's song catalog

Neil Young achieved the heart of gold by selling 50% of the publishing house’s song catalog

Veteran rock star Neil Young sold half of the rights to his song catalog to Hipgnosis Song Fund SONG,
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The British publishing house is looking to capitalize on the boom in music ratings amid the popularity of streaming services.

Under the terms of the deal, announced on Wednesday, FTSE 250-listed Hipgnosis took a 50% stake in the 75-year-old Canadian singer’s portfolio of 1,180 songs, which includes “Heart of Gold” and “Rockin” in the Free. World and Cinnamon Girl.

Hipgnosis did not disclose the value of the deal, which is estimated to be priced at $ 150 million, according to Music works all over the world.

The deal comes less than a month after Universal Music Publishing Group signed a historic purchase Entire catalog of Bob Dylan songwriting, Including classics like “Blowin ‘in the Wind” and “The Times They A-Changin” for $ 300M. Just days ago, Fleetwood Mac singer-songwriter Stevie Nicks She sold an 80% stake in her music to Primary Wave for $ 80 million.

Read: 5 Reasons Why Musicians Like Bob Dylan and Steve Nicks Sell Their Song Catalogs Now

Music consumption soared thanks to streaming platforms like Spotify SPOT,
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And Apple Music, which has allowed listeners to rediscover and play some of their favorite tracks of years past. Catalogs of songwriters bring selling prices from 10 to 18 times the annual royalties, compared to 8 to 13 times in previous years, according to the Wall Street Journal.

Founded by music industry veteran Merck Mercuriadis, who previously managed artists including Elton John, Beyoncé, and Morrissey, Hipgnosis was listed on the London Stock Exchange in 2018 and now has a market capitalization of approximately $ 1.3 billion.

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The publishing house invests in songs and musical intellectual property rights, generating revenue by converting music revenues into a steady income stream, and earning money every time one of its songs is played on the radio or shown in a TV commercial or movie.

“This is a deal that will change Hipgnosis forever,” Mercuriades said when announcing the deal on Wednesday. “I built Hipgnosis to be a company that Neil wanted to be a part of. We have a shared integrity, spirit and passion that stemmed from our belief in music and these important songs.”

Young, who rose to prominence in the 1960s and 1970s, released nearly 50 studio albums and over 20 live albums, of which 18 were gold, seven platinum, and three multi-platinum albums.

In December, Young dropped his car lawsuit Against US President Donald Trump’s campaign to play two of his songs at his campaign rallies without permission.

Read: Artists harvest the gold by selling their musical rights. How can investors make money.

Shares in Hipgnosis, which have already risen 3% so far this year, were trading down 0.28% in London on Wednesday.

The publishing house has been in a takeover wave since September, having raised it 250 million pounds sterling By placing shares to fund other acquisitions.

Earlier this week, the company cut 100% off the catalog of 161 songs by former Fleetwood Mac guitarist. Lindsay Buckingham Plus 50% of any songs that haven’t been released yet. It also obtained the rights to worldwide producers of 259 songs by Jimmy Yovin, Who produced artists including Bruce Springsteen and Patti Smith before founding Beats Electronics, the Apple AAPL company,
It was purchased in 2014 for $ 3 billion.

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Hipgnosis has now spent more than £ 1 billion acquiring the rights to nearly 60,000 songs, including those written by Blondie, Barry Manilow, and Chrissie Hynde of the Pretenders, among others.