US Blackstone Invests 1.2 Trillion Won in Music Streaming

[Asia Economy Reporter Yujin Cho] The major U.S. private equity firm Blackstone is investing $1 billion (approximately 1.1965 trillion KRW) in the music rights business of famous pop stars.

On the 12th (local time), according to the Wall Street Journal (WSJ) and others, Blackstone plans to partner with the UK music rights investment company Hipgnosis to acquire the music rights of famous pop stars.

Hipgnosis, founded in 2018 by former pop star manager Merck Mercuriadis, owns the rights to over 64,000 songs, including hits by pop stars such as Justin Bieber, Beyonc?, Rihanna, Shakira, Neil Young, and Mariah Carey.

Mercuriadis, who managed Guns N' Roses, Elton John, and Beyonc?, established the investment company to acquire music rights after recognizing the growth potential of the streaming music market.

Foreign media evaluated this investment as a bet on music assets based on the long-term growth potential of the online streaming industry.

Blackstone's Qasim Abbas said, "The music industry is pioneering new ways of content consumption at the forefront of the rapidly growing online streaming economy."

He added, "We see value in the music rights business as a long-term and sustainable asset," and indicated the possibility of expanding investments by saying, "This investment is still in its early stages."

Blackstone will acquire a partial stake in Hipgnosis, and according to their agreement, the two companies plan to secure the music rights of famous pop stars. Specific contract details, such as the scale and method of acquiring Hipgnosis shares, have not been disclosed.

Mercuriadis stated, "During the COVID-19 pandemic, demand for listening to famous pop stars' music via online streaming services has increased, expanding the music copyright market."

William Ackman, a heavyweight in the U.S. hedge fund industry, also showed investment moves in music rights by acquiring a 10% stake (approximately $42 billion) in Universal Music Group this summer, alongside other major private equity firms and asset management companies.

This content was produced with the assistance of AI translation services.