Justin Bieber is the latest big act to sell the music rights in a $200 million deal

Justin Bieber is said to be close to finalizing a $200 million deal to sell his music rights.

According to the Wall Street Journal, Bieber is in negotiations with Hipgnosis Songs Capital, a Blackstone-backed investment and song management firm, in a deal that would value his rights at “about” $200 million.

The potential deal includes both Bieber’s publishing and recorded music catalog, the magazine noted, and marks the largest acquisition yet for Hipgnosis, which bought the rights to Justin Timberlake’s song catalog for $100 million earlier this year.

Music publishing includes copyright for songwriting and composition, such as songs and melodies. Although copyright often does not equal the value of the actual recordings, it can still generate a significant amount of revenue over time through radio play, advertising, movie licensing, and more.

Justin Bieber performs on stage during the 64th Annual GRAMMY Awards at the MGM Grand Garden Arena on April 3, 2022 in Las Vegas, Nevada. (Photo by Rich Fury/Getty Images for The Recording Academy)

The news is just the latest in a series of similar deals artists have made over the years, as streaming services like Spotify (SPOT), Apple (AAPL), and Amazon (AMZN) increase the value of their back catalogs.

In December 2021, Bruce Springsteen sold his master recordings and publishing rights to Sony Music in a deal worth $500 million, according to multiple outlets. The Red Hot Chili Peppers sold the rights to their song catalog for $150 million that same year.

In 2020, Bob Dylan sold over 600 copyrights to Universal Music Group in a deal said to be worth more than $300 million. Before that, Stevie Nicks sold a majority stake in her songwriting for $100 million.

Guillermo Page, a former record label executive who worked for Sony and Universal, previously told Yahoo Finance.

“The live broadcast provided stability,” noted Page, who is now studying in the University of Miami’s music program.

β€œThe key is that the business becomes predictable,” Page explained, adding: β€œ[Investors] He can be confident in the future of the business because it is growing. When you get rid of uncertainty, it opens up a new door for investors to come in and pick up those assets.”

The reported Bieber deal indicates that young artists are beginning to cash in on this growing trend. Although, buyers are having more difficulty financing deals within the current interest rate environment – something the pandemic era has avoided amid rock-bottom rates.

“You see all the big acts from the ’70s, ’80s, ’90s who are riding the wave of live,” Page said, explaining that artists can now “make a lot of money” in ways they weren’t able to in the past.

“It’s the perfect storm for artists who can now maximize their returns from the sale of those assets.”

Alexandra is the chief media and entertainment correspondent for Yahoo Finance. Follow her on Twitter aliecanal8193 and email it to alexandra.canal@yahoofinance.com

Read the latest financial and business news from Yahoo Finance

Download the Yahoo Finance app for an Apple or android

Follow Yahoo Finance on Twitter TwitterAnd the FacebookAnd the InstagramAnd the FlipboardAnd the linkedinAnd the Youtube

#Justin #Bieber #latest #big #act #sell #music #rights #million #deal

Leave a Reply

Your email address will not be published. Required fields are marked *