How the ambitious 'song management' company went from industry game-changer to cautionary tale
A detailed explanation of the financial complexities behind the rise and fall of HipgnosisA breakdown of the many branches in the music royalty company’s family tree“There’s no bubble here. A bubble is when somebody is overpaying for something that doesn’t have the sort of metrics that these investments have,” he said.of HSF assets, a reevaluation brought about following investors’ loss of confidence in HSF leadership.
So what happened? Like any timeline of an upstart that tries to break the rules, it’s complicated, dramatic and a cautionary tale for companies that try to blaze their own path to success.— a manager with a personality only outsized by clients including Morrissey, Elton John and Beyoncé — and disco pioneer Nile Rogers founded Hipgnosis on the belief that classic songs were assets as: No matter the market’s activity, music will always be playing.
And the company was willing to spend a lot of money. By October 2019, just over a year after debuting on the London Stock Exchange, HSF had raised roughly $800 million and owned around 6,000 songs worth $1.3 billion. From there, awith Blackstone, which backed the $1 billion Hipgnosis Songs Capital private fund in exchange for an ownership stake in HSM.In July 2022, HSF released its year-end financial report for the 12 months ending in March.
Citrin Cooperman and HSM initially anticipated HSF would receive $21.7 million from these retroactive royalty payments for 2018-22. But on Oct. 16, following the Copyright Royalty Board’s completed evaluation, HSF investors were told that Citrin Coopermanthat expected revenue to $9.9 million — 54.3% lower than their original number. As a result, HSF investors’ planned interim dividend was put on hold. Shares for HSF” that included whether it continues employing HSM as its adviser.
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