Striking a chord: Hipgnosis buys half of Neil Young’s song catalogue
Hipgnosis has snapped up the rights to Neil Young’s catalogue of songs as it ploughs ahead with its musical acquisition spree.
The London-listed firm has taken a 50 per cent stake in the Canadian rock ‘n roll star’s portfolio of 1,180 tracks.
Hipgnosis did not disclose the value of the deal, but industry experts have estimated a price tag of $150m (£110m).
Young rose to prominence in the 60s and 70s and is widely considered one of the most influential songwriters of all time.
He is known not only for his work as a solo artist, but also with bands such as Buffalo Springfield, Crazy Horse and Crosby, Stills, Nash & Young.
In total, Young has released almost 50 studio albums and more than 20 live albums, of which 18 are certified gold, seven are platinum and three are multi-platinum.
“This is a deal that changes Hipgnosis forever,” said Merck Mercuriadis, the company’s founder.
“I built Hipgnosis to be a company Neil would want to be a part of. We have a common integrity, ethos and passion born out of a belief in music and these important songs.”
Big Spender
It is the latest big-ticket acquisition for Hipgnosis, which generates revenue from placing songs in films and TV shows.
In September the company raised £250m through a share placing to help fund further acquisitions, and it has a pipeline worth roughly £1bn.
Today’s catalogue purchase follows the acquisition of 161 songs written by Lindsey Buckingham.
The portfolio includes iconic hits from Fleetwood Mac’s album Rumours, such as Go Your Own Way and The Chain.
Other recent acquisitions for Hipgnosis include the rights to songs by Wu-Tang Clan producer and rapper RZA and Pretenders lead singer Chrissie Hynde.
Hipgnosis is one of a number of companies looking to cash in on the surging value of music recording rights.
In November rival Round Hill Music raised $282m from its initial public offering on the London Stock Exchange.
It has already identified more than 120,000 songs by artists including The Beatles, Celine Dion, The Rolling Stones, Louis Armstrong, Elvis Presley and Katy Perry.
Universal Music last month also got in on the act, buying Bob Dylan’s entire catalogue of 600 songs.