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Sony Music Publishing formally announced their agreement to acquire Recognition Music Group's complete catalog
Sony Music Publishing, in a partnership with Singapore sovereign investment fund GIC, confirmed its agreement to acquire the music assets of the Recognition Music Group from Blackstone, the private equity firm.
Terms of the deal were not disclosed, and it’s still subject to customary closing conditions, which presumably includes a review by governmental agencies. According to the announcement, the acquisitions encompass the entire catalog of works acquired by Recognition, including songs such as Journey’s “Don’t Stop Believin’,” Red Hot Chili Peppers’ “Under the Bridge,” Fleetwood Mac’s “Go Your Own Way,” Beyoncé’s “Single Ladies ,” Bruno Mars’ “Locked Out of Heaven,” Leonard Cohen’s “Hallelujah,” Chic’s “Good Times,” Soundgarden’s “Black Hole Sun,” Lady Gaga’s “Bad Romance,” Bon Jovi’s “Livin’ On A Prayer,” Rihanna’s “Umbrella,” Eurythmics’ “Sweet Dreams ,” Shakira’s “Whenever, Wherever,” Steve Winwood’s “Higher Love” and Mariah Carey’s “All I Want For Christmas Is You.
”“We are so proud and excited to represent this incredible catalogue of many of the greatest songs in pop history through this momentous acquisition,” Sony Music Group chairmanBeginning in 2021, Blackstone amassed some $3 billion in music assets through forming a partnership with Hipgnosis Songs Capital, which acquired Hipgnosis Songs Management and also invested about $800 million in acquiring music rights; and then in 2024 acquiring the publicly traded Hipgnosis Songs Capital fund for $1.6 billion and assuming some $600 million in debt for a total price of about $2.2 billion.
“Our investment in this extraordinary catalog reflects our belief in the enduring power of great music — a belief that resonates deeply throughout Sony Music Group and is shared by our partners at GIC,” Sony Music Publishing chairman & CEOsaid in a statement. “These timeless songs continue to define culture and inspire generations, and it is privilege to champion their legacy as guardians of their next chapter.
” The deal comes on the heels of two earlier Sony acquisitions of Recognition music: in the first deal Sony acquired Hipgnosis Songs Management administration business and about 4,400 copyright including songs recorded by Sabrina Carpenter, Shawn Mendes, One Direction, Alex Warren, Teddy Swims and Panic! At The Disco; and then it acquired another group of music rights including works from songwriters of Jeff Bhasker and Jack Antonoff.
With the agreement of the third sale of music assets to Sony, Blackstone MD and head of tactical opportunities internationalsaid in a statement, “This transaction delivers a strong outcome for Blackstone and our investors and represents a further vote of confidence in music rights as an institutionally established asset class. Sony is an exceptional home for these iconic catalogues, and we look forward to continuing to invest across the music sector through Recognition.
” Along the way in accumulating its portfolio of music assets, Blackstone raised some $2 billion in debt through three separate assets backed securitizations. said in a statement.
“The team and I are incredibly proud of what we have built at Recognition — protecting and enhancing the legacy and value of these songs while in our care. This is a milestone moment for Recognition and testament to the enduring value of music.
” It’s unclear if that debt has been retired or how Sony is using debt to pay for the latest deal other than to say Sony Bank Inc and GIC participated in the deal, presumably as funding partners. Bloomberg reports that the deal’s valuation could be $3.5 billion or more. Considering the two earlier Sony acquisition of Blackstone assets, that could put the total price of the three deals in the $4 billion range.
Besides Sony Bank, Sony Music publishing was represented in the transaction by Simpson Thatcher & Bartlett LLP, Loeb & Loeb LLP, Cleary Gottlieb Steen & Hamilton LLP, Ernst & Young, and PricewaterhouseCoopers LLP; while the Blackstone/Recognition team were advised by Shot Tower, Kirkland & Ellis LLP, Latham & Watkins LLP, and Deloitte. Blackstone still owns music assets through a New York based investment team which acquired SESAC, the performance rights organization; and eMusic, a record label with hip-hop, heavy metal, country and gospel recordings, which it renamed MNRK.
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