Justin Bieber, one of the top-selling artists of the present century joins growing groups of artists who’ve cashed out on their music rights. The Canadian pop star sold his music rights to Hipgnosis Song Management for a whopping $200 million.

While his shares of hits like “Love Yourself”, and “Sorry” and even older hits like “Baby” is said to be comparatively small, they’re still huge worldwide hits that of several define an era.

The sale has been rumored for a couple of weeks and sees the 28-year-old start to join who is who of an artist who’s cashed out recently on their catalogs.

Whopping $200 million deal

Hipgnosis didn’t publically reveal the phrases of music rights deals, but a source close to the matter told it was worth around $2 hundred million.

Contemporary pop stars including Shakira and Justin Timberland have sold huge stakes in their work – both also struck deals with Hipgnosis – but the move has mostly been seen among legacy artists like Bruce Springsteen and Bob Dylan.

The staggering amount – the catalog of Springsteen went to Sony for a reported $500 million – is considered a safe bet both for older stars getting their finances in order and investors who can count on consistent and smooth returns from time-tested music and the viability of streaming.

Younger music catalogs are seen as a bit riskier territory, but Justin Bieber is among the top-selling pop stars ever and now Hipgnosis has his share in some of the biggest hits of the current century “Sorry” and “Baby”.

Canadian Pop Star now becomes the youngest artist to sell his whole music catalog

Hipgnosis Songs Capital is a one billion dollar project between fiscal giant UK Hipgnosis Song Management & the Blackstone.

Hipgnosis said they acquired his interest in publishing copyrights to his 290 tracks back catalogue – all of his songs released before Dec 31, 2021.

His longtime home will go on to manage the music catalogue, one more source close to this mega music deal said, and still owns Justin’s master song recordings.

Hipgnosis has grabbed the stake in his masters and his neighboring rights – a royalty that sees its holder receives a payment each time a song is played publically.

After he disclosed it on YouTube channel as a young teenager, he skyrocketed in worldwide popularity, selling more than one hundred and fifty million plus records.

The pop star has charted 8 no.1 records on top-selling album lists at Billboard, and his song has streamed on Spotify alone more than thirty-two billion times.

“The impact of the pop star on universal culture ever the previous fourteen years has been remarkable, said Chief Merck Mercuriadis of Hipgnosis, a longtime music industry executive, in his recent statement.”

“At the age of 28, Justin Bieber is one of a handful of defining music artists of the current streaming period that has re-energized the whole music industry, taking a faithful and global audience with him on a expedition from a teen-specific to a culturally significant artist.”

The health of pop star has suffered in recent times, with the star going on an imprecise touring break after he revealed he is diagnosed with Ramsay Hunt Syndrome, an extremely rare complication of shingles that from him caused partial facial paralysis.

Canceled tours of Justin Bieber have hit his finances

In the past couple of years, Justin Bieber has canceled many concerts for several reasons, including an outbreak, but it has also been because he just did not feel like it.

This year Justin Bieber had cancellations due to health problems, but from what he posts on his social account, he is still giving himself a new life that is costing him a lot of dollars.

The issue according to Wall Street Journal is that out of 2 hundred million dollars, he has to split a lot of that amount among all his partners, as he is not someone who usually writes his tracks solo, but with other creators.

But according to sources close to Justin Bieber, he’s running out of funds because of his regular extremes, which he does not look to be willing to decrease, reason, why they assure, is he’s practically running out of cash, and this causing him serious issues on a personal level with his life partner.

The contract is not official at the time of writing, but everything indicates that it’ll be announced soon, as Justin Bieber needs to have the liquidity to settle his financial issues.

Lucrative asset class

Music catalogs have forever changed hands, but the present publishing sales boom had escalated quickly, with financial markets increasingly drawn to lucrative his music portfolio as an asset class.

Mercuriadis, which went public on the LSE (London Stock Exchange) in 2018, has played a huge part in publicizing the spike in sales.

The sector has looked to cool recently, but the deal shows investors are still in Hungary for music acquisitions.

Owners of music’s publishing rights receive a cut in several scenarios, including streaming and radio play, album sales, and use in marketing and films. Recording rights govern distribution and reproduction.

The flurry of sales comes aimed at a bigger conversation over artist ownership of the work, amplified in huge part by mega star Taylor Swift, who has found resounding success as she re-records her 1^st 6 albums so she can control their master recording rights.

The move stemmed from her very public feud with Scooter Braun, the music management company once owned her genuine masters, and later sold them to the investment company Shamrock Holdings.

Scooter Braun has been the manager of Justin Bieber for 15 years, and in his recent statement, he said when he decided to make a catalogue deal with rapidly found the best partner to preserve and grow this wonderful legacy was Hipgnosis and Merck.

One of the best pop stars of the current era, Justin Bieber is truly a generation artist and that’s reflected and acknowledged by the magnitude of this whopping deal.

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