LA REID Sells Entire Music Catalog to Hipgnosis.
LA_reid the Mega producer, songwriter, and music executive is the latest artist to sell off their music catalogs and future royalties to the newly created music IP investment and song management company, Hipgnosis Songs Fund. Reid is reported to have sold 100 percent of his publishing rights and writer’s income on his entire 162 song catalogue for an undisclosed amount. It is not Known exactly why he sold his back catalogue, but we’re hoping it was worth it and for a great price.
Hipgnosis Songs Fund , a British company founded by founder/CEO Merck Mercuriadis along with Nile Rodgers in 2018, Since its creation it has been buying up catalogs from hitmakers like Benny Blanco, Dave Stewart, Timbaland, The Dream, Sean Garrett, Jack Antonoff, Will-TangClan’s RZA, Jeff Bhasker, even from The Chainsmokers It’s reported that in it’s first 2 years Hipgnosis Songs Fund has spent over $1 Billion dollars in less than 2 years to acquire approximately 60 deals. Between March 2019 and March 2020, the company is reported to have spent nearly $700 million to acquire over 42 catalogs.
Known largely as the co-founder of @lafacerecords along with @babyface. In 1988, the duo together, went on to launch the careers of PINK, TLC, OUTCAST, USHER, and many more. LA Reid’s songwriting and producing catalog alone, includes records from, BOYZ II MEN, TLC, TONI BRAXTON, BOBBY BROWN, WHITNEY HOUSTON, Justin Beiber, Rihanna, Travis Scott, Mariah Carey, and many others.
In 2011, Reid was appointed chairman and CEO of ELIC Records, but was forced to step down 6 years later in 2017, following multiple accusations of sexual harassment against him. Following his untimely departure from EPIC he moved back to Atlanta and co-founded Hitco Entertainment (Hitco Records) with Charles Goldstuck in 2018 which he continue to manage. In regards to the deal, Reid said: “I can’t imagine a better home for my lifetime of music and songs than Hipgnosis. Merck and his dream team truly value artists and their creative vision, and I couldn’t be more thrilled to partner with them due this exciting new chapter.” In addition to selling his catalog, Reid has recently been appointed to the Hipgnosis’ board of advisors.
The founder, Merck Mercuriadis, who continues to manage Nike Rodgers says: “At the end of the day [when buying catalogs], you have to demonstrate to songwriters, artists, and producers that you are the right pair of hands for them to put their children in...” Merck stated that his “Ulterior Motive” with Hipgnosis {was} to gain enough market power in the music rights apace to bring about a change in the recompense seen by songwriters in the streaming age.”
Ntund has been following Hipgnosis since its been beeping on our radar. The company has been listed on the London Stick Exchange since July 2018 and says that it allows it’s investors to receive an income from its music royalties. Investors? Why not the Artists, producers or songwriters that created the works? Is Reid, Hiphnosis, and their silent investors industry saviors or just masquerading as another Major Label out to rob artist for their creative works? Your thoughts?