The company said in July, alongside annual results, that it was studying a “strategic sale of song catalogues” to reduce the sizeable discount in its share price to its net asset value.
Its founder, Merck Mercuriadis, is CEO and founder of investment advisor Hipgnosis Song Management (HSM), and owns a minority stake in the buyer, Hipgnosis Songs Capital.
In 2021, Blackstone agreed to deploy around $1 billion in partnership with HSM to buy music rights and record songs at a time when online streaming was gaining popularity and becoming more lucrative.
Hipgnosis said the proceeds from the sale will be used, among other things, for a share repurchase program of up to $180 million and the repayment of a $250 million revolving credit facility.
The 29 catalogs represented 19% of the company’s portfolio by value as of March 31. Hipgnosis Songs Fund will retain ownership of seven of its ten largest catalogues, he added.