Justin Timberlake Sells All His Songs to Hipgnosis

200 Tunes

Justin Timberlake just snagged an estimated $100 million by selling the rights to his song catalog to private-equity giant Blackstone (BX). The deal transfers ownership of the music star’s interest in about 200 songs to Blackstone partner Hipgnosis and its offshoot, Hipgnosis Songs Capital.

Timberlake’s career began as a child star in “The All New Mickey Mouse Club.” He later became part of the popular boy-band NSYNC and started working as an actor in movies, also making appearances on Saturday Night Live. Timberlake has sold more than 150 million albums to date.

Pandemic Play

The purchase comes on the heels of the heightened popularity of the music catalog sector during the pandemic. Investors saw royalties as a source of stable yields that weren’t easily achieved in other asset classes. Predictable income from streaming music platforms like Spotify (SPOT) and the potential to lower total portfolio volatility were seemingly attractive.

In the last few years, several other firms such as KKR (KKR) and Blackrock (BLK) sought out profit potential in music rights as well.

Will the Music Stop?

Now that billions of dollars have flowed into the space, some market observers wonder if investment opportunities have all but dried up. The Timberlake deal may refute that notion.

Blackstone’s partnership with Hipgnosis was formed just last fall. Industry observers contend the song management company’s co-founder, Merck Mercuriadis, has been a driving force igniting interest in music rights deals. It remains to be seen if the momentum and attractive risk and reward tradeoff can be sustained following the strong deal flow of the last few years.

Things are changing daily within the financial world. Sign up for the SoFi Daily Newsletter to get the latest news updates in your inbox every weekday.

Sign up

Please understand that this information provided is general in nature and shouldn’t be construed as a recommendation or solicitation of any products offered by SoFi’s affiliates and subsidiaries. In addition, this information is by no means meant to provide investment or financial advice, nor is it intended to serve as the basis for any investment decision or recommendation to buy or sell any asset. Keep in mind that investing involves risk, and past performance of an asset never guarantees future results or returns. It’s important for investors to consider their specific financial needs, goals, and risk profile before making an investment decision.
The information and analysis provided through hyperlinks to third party websites, while believed to be accurate, cannot be guaranteed by SoFi. These links are provided for informational purposes and should not be viewed as an endorsement. No brands or products mentioned are affiliated with SoFi, nor do they endorse or sponsor this content.
Communication of SoFi Wealth LLC an SEC Registered Investment Adviser
SoFi isn’t recommending and is not affiliated with the brands or companies displayed. Brands displayed neither endorse or sponsor this article. Third party trademarks and service marks referenced are property of their respective owners.

All your finances.
All in one app.

SoFi QR code, Download now, scan this with your phone’s camera

All your finances.
All in one app.

App Store rating

SoFi iOS App, Download on the App Store SoFi Android App, Get it on Google Play

James Flippin ABOUT James Flippin James Flippin is the son of a financial advisor who grew up hearing and learning about bond yields, interest rates, the stock market, and the ins and outs of Wall Street. After stints as a licensing and business broker for Marcus and Millichap in New York City, James moved into broadcasting and became a reporter and anchor. He covered crime, politics, finance, and tech at NBC News Radio while working part-time as a producer for SiriusXM. James graduated from the University of Delaware with a bachelor’s degree in political science and economics. He's also an accomplished podcaster with over 10-years of experience.

TLS 1.2 Encrypted
Equal Housing Lender