Justin Bieber Is On The Verge Of Inking Massive Music Rights Deal

If the reports are true, Justin Bieber is about to sign a deal that will transfer ownership of the musician’s publishing and recorded music catalogs to Hipgnosis Songs Capital. The sale price?

$200 million

The sale would mean, going forward, Hipgnosis would earn all of the money generated by Justin’s songwriting credits and music royalty generation. If completed, it would be the largest offered by Hipgnosis and it comes at a time when the hype around music catalog sales have faded considerably. Hipgnosis’ stock price is down more than 30% year-to-date as investors worry that the perceived value of song catalogs may have been inflated by a low-interest rate environment, like many other newer investments like SPACs, crypto and NFTs. On the other hand, despite his relatively young age (he’s 28) many of Bieber’s songs have already achieved “classic” status, and should produce healthy royalty streams for decades to come. They are not fads that people won’t be streaming in a few years. The deal would not include Bieber’s master recordings and various other copyrights which are owned by his record company, Universal Music Group. Prior to the rumored deal, we estimated Justin Bieber’s net worth at $300 million with the assumption that his combined intellectual property rights were worth a total of $200 million.