Pop sensation Justin Bieber has entered into a historic deal, worth an estimated $200 million, to sell his music rights to Hipgnosis Songs Capital, an investment firm backed by Blackstone Inc. In recent years, Hipgnosis has made a name for itself by purchasing song catalogs from artists and earning revenue through the streaming of their music on various online platforms, as well as its use in film and television commercials.
"A Once-in-a-Generation Artist": Justin Bieber's Legacy
Bieber, who rose to fame at the tender age of 13 with the release of his hit single "Baby", has amassed an impressive body of work throughout his career. His long-time manager, Scooter Braun, has spoken highly of the deal, according to Forbes, noting, "I'm so proud of him and all those involved over the years in helping amass this incredible body of work.
Justin is truly a once in a generation artist and that is reflected and acknowledged by the magnitude of this deal." It is worth noting that Braun himself was the subject of controversy in 2020, when he sold Taylor Swift's masters recordings to Shamrock Capital without her consent.
An Industry-Wide Trend
Bieber is not alone in his decision to sell the rights to his music. In recent years, many music stars have made similar moves, with a handful of celebrities already doing so in 2021 alone. Dr. Dre, for example, is reportedly in the process of selling some of his music income streams and assets to both Shamrock Holdings and Universal Music Group.
The deal would see the rapper, whose net worth is estimated at $820 million, hand over ownership of a significant portion of his assets. According to Billboard, the package being sold by the co-founder of Beats Electronics is worth around $10 million a year, and includes percentages of his two solo albums, his share of the artist association, his deals with producers, and a share of his song catalog.
The sellers were said to be seeking $250 million, but it is believed that the final combined payments will fall just short of that figure, collectively bringing in upwards of $200 million.
Personal Struggles and Triumphs
The pop star has been open about his personal struggles, including a recent diagnosis of Ramsay Hunt syndrome, which has left half of his face paralyzed and forced him to cancel shows.
Despite this setback, Bieber continues to make a significant impact on the music industry and his legacy lives on through his catalog of hit songs.