Concord Music has upped its bid to acquire London based company Hipgnosis Songs Fund (HSF) to $1.25 per share, edging out Blackstone’s competing offer by a penny. This move escalates the battle for control over HSF’s music rights assets, which include songs by artists like Red Hot Chili Peppers, Christine McVie, and Blondie, among others.
The new offer, an all-cash deal, according to Billboard values Hipgnosis’s assets at approximately $1.51 billion. Concord plans to sell up to 30% of Hipgnosis’ assets within 18 to 24 months post-acquisition. HSF’s board of directors, previously in favor of Blackstone’s bid, now unanimously recommends shareholders accept Concord’s offer.
Concord intends to finance the acquisition through a mix of debt and equity, primarily from Concord itself with minor participation from Apollo Funds. Blackstone’s “possible offer” of $1.24 per share remains on the table, though they have yet to submit an official bid.
Among the shareholders of Hipgnosis are the Church Of England CCLA and Blackstone who has already invested 1 billion dollar int the company in a separate deal.
Concord’s move follows its acquisition of Hipgnosis competitor Round Hill Music Royalty Fund for $468 million in 2023, marking one of the largest catalog deals of the year. Through this acquisition, Concord gained rights to over 150,000 songs, including reggae songs like “Uptown Top Ranking” and works by The Beatles, Elvis Presley, and others.
The company founded in 1973 as Concord Music Group, is headquartered in Beverly Hills, California, is an independent music company with global distribution through Universal Music Group merged with Bicycle Music Company in 2015 to become Concord Bicycle Music. Over the years, Concord Music Group acquired several labels and catalog rights, including Fantasy, Telarc, and Rounder Records. It also established partnerships with artists like Ray Charles and Paul McCartney, and won multiple Grammy Awards. After the merger, Concord Bicycle Music continued to expand its portfolio by acquiring Vanguard Records and Sugar Hill Records.
