Hipgnosis Songs raises another £10m in order to buy artists’ music royalties
Hipgnosis Songs has raised another £10m in order to buy artists’ music royalties.
The music investment company issued 9m shares at a price of 119.5p each, adding that the new shares would start to trade next Wednesday.
A Hipgnosis spokesman said: ‘The net proceeds will be used to fund an investment in accordance with the company’s investment policy.’
Spending spree: Hipgnosis has been buying up songs by artists such as the Pretenders, Fleetwood Mac, Mark Ronson and Shakira (pictured) to capitalise on the streaming revolution
The latest share sale by the FTSE250 firm comes just over a month after Hipgnosis raised £75m in February.
Hipgnosis was founded by former Elton John and Guns ‘n’ Roses manager Merck Mercuriadis and is advised by Nile Rodgers of funk band Chic. It has been buying up songs by artists such as the Pretenders, Fleetwood Mac, Mark Ronson and Shakira to capitalise on the streaming revolution.
But Hipgnosis has come under criticism for not revealing how much it pays artists to acquire their songs, leaving investors to trust management that they are getting a good deal.
Many musicians want to sell their songs to pay for their retirement or set up an estate for their children.