Justin Bieber Triumphantly Cashes Out on Music Catalog with $200m Sale to Hipgnosis Songs Capital

Justin Bieber Sells Rights to Music for $200m

Pop star Justin Bieber has sold his share of the rights to his music to Hipgnosis Songs Capital for a reported $200m (£162m). The deal means that Hipgnosis now owns the rights to some of Justin Bieber’s biggest hits, including Baby and Sorry. Justin Bieber joins a growing group of artists who have cashed out on their catalogues, with music funds becoming an increasingly popular way for artists to generate revenue.

Justin Bieber’s “De-risking” Strategy: Selling Back Catalogue

 CREDIT: Rich Fury/Getty Images for The Recording Academy

Hipgnosis Songs Capital acquired Justin Bieber’s publishing copyrights to his 290-song back catalogue, as well as his share in the original master recordings of his songs. This includes all of his music released before December 31, 2021. The company, which is a $1bn venture between financial giant Blackstone and the British Hipgnosis Song Management, will now receive a payment every time a song it owns is streamed or used on radio, TV or film.

The trend of selling stakes in music catalogues is becoming more common among older artists, with music legends Bob Dylan and Bruce Springsteen both selling back catalogue rights to Sony in the last two years. Springsteen received a reported $500m (£376m) for the sale of his life’s work.

Understanding Justin Bieber’s Decision to Sell Music Rights

At a young age of 28, Bieber is among the youngest artists to make a significant sale of his music rights.
 Photo: Kevin Mazur/Getty


Up-and-coming artists may now be watching Bieber’s pension plans as closely as they do announcements for his new music. Bieber had a choice – continue to reap the rewards every single time one of his hits gets played, or cash in now and sell the rights in a lump sum. Bieber’s bet is he’s better off with latter. It’s a move often made by singers much older than him.

Hipgnosis Songs Capital is separate entity to the Hipgnosis Songs Fund, which has also been building up a catalogue of classic hits and inviting big institutional investors to share in the proceeds. The fund floated on the London Stock Exchange in 2018, while Hipgnosis Songs Capital is a private company. The man behind both companies is Merck Mercuriadis, who has claimed hit songs can be “more valuable than gold or oil”.

He said Bieber’s music was “arguably the definitive soundtrack of the streaming revolution”, with 13 songs that have each achieved more than a billion streams on platforms like YouTube and Spotify. As his audience is still relatively young, he added, royalties will continue to pour in for “60 or 70 years”.

However, the fund’s share price has fallen by more than 27% since this time last year, as investor interest has waned. In December, Mercuriadis called the share price situation a “disappointment”, but said he believed in the company’s long-term profitability.

The company’s share price rose by 1.6% after the Justin Bieber deal was announced, even though it is not involved in that purchase.

The Future of Justin Bieber’s Music Royalties post-Sale.

In conclusion, Justin Bieber’s sale of his share of the rights to his music to Hipgnosis Songs Capital for a reported $200m (£162m) is a move that is becoming increasingly popular among older artists. Music funds are becoming a way for artists to generate revenue and secure their future.

The sale means that Hipgnosis now owns the rights to some of Bieber’s biggest hits, including Baby and Sorry, and will receive a payment every time a song is streamed or used on radio, TV or film. The trend of selling stakes in music catalogues is becoming more common among older artists, with music legends Bob Dylan and Bruce Springsteen both selling back catalogue rights to Sony in the last two years.

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