As online streaming grows in popularity and profitability, Blackstone announced on Tuesday that it will invest roughly $1 billion in collaboration with an advisory group headed by music executive Merck Mercuriadis to buy music licenses and create songs.
Blackstone will invest in Hipgnosis Song Management, an adviser to the London-listed music catalogs investor Hipgnosis Songs Fund, as part of the agreement.
Due to the epidemic and a shortage of live performances, musicians such as Bob Dylan have decided to monetize some of their older work at a time when streaming services are gaining popularity.
Mercuriadis, the creator and CEO of Hipgnosis Song, has signed deals with Shakira, Taylor Swift songwriter Joel Little, Neil Young, and Metallica producer Bob Rock this year.
Mercuriadis said in a statement that “this new cooperation with Blackstone will bring financial muscle to invest in proven tunes.”
According to the firms, SONG will profit from the Blackstone investment since it will be able to co-invest in the acquisition of future music rights.
Blackstone is becoming interested in music, having invested in MNRK Music (previously eOne Music) and SESAC.
