Berliner Tageblatt - Blackstone wins bidding war for UK music rights firm

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Blackstone wins bidding war for UK music rights firm
Blackstone wins bidding war for UK music rights firm / Photo: © GETTY IMAGES NORTH AMERICA/AFP/File

Blackstone wins bidding war for UK music rights firm

US private equity firm Blackstone emerged victorious Thursday in a takeover battle for struggling UK music rights owner Hipgnosis Songs Fund, after American group Concord refrained from improving its bid.

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Concord, a rival to Hipgnosis, said in a statement that it would not hike its $1.5-billion bid after Blackstone agreed a $1.6-billion offer.

Hipgnosis manages the rights to more than 150 of the world's biggest song catalogues, including Justin Bieber, Shakira and Neil Young.

Concord "confirms that its offer of $1.25 per Hipgnosis share is final and will not be increased", it said in a brief statement clearing the path for Blackstone.

The US private equity house last week ramped up its bid to $1.30 per share.

"It looks like the battle for Hipgnosis Songs Fund won't be having another encore," said AJ Bell investment director Russ Mould.

Hipgnosis was co-founded in 2018 by guitarist and producer Nile Rodgers and Merck Mercuriadis, former manager of Beyonce and Elton John.

The London-listed fund has been plagued by concerns over asset valuations and recently slashed the value of its songs catalogue by more than a quarter to $1.93 billion.

That came after Hipgnosis revealed in December that its first-half net losses tripled on tumbling sales.

M.Ouellet--BTB