Hipgnosis Drama Continues: Blackstone Bids $1.5 Billion for Troubled Music Fund, Topping Concord

variety.com:

Jem Aswad Executive Editor, Music The already-complicated battle over control of Hipgnosis Songs Fund grew even more so on Saturday, as the private equity firm Blackstone bid $1.5 billion to the troubled fund — which includes the rights to catalogs by Neil Young, Shakira, Blondie, Journey, Lindsey Buckingham and others — pushing aside Concord’s $1.4 offer made earlier in the week.

Blackstone already owns two other elements of Hipgnosis — the investment fund Hipgnosis Songs Capital and the advisor Hipgnosis Song Management — and the move reflects founder Merck Mercuriadis’ determination to retain control of the company.

As noted by Music Business Worldwide, Blackstone’s offer is not yet “firm” — it is just a proposal — but if it is accepted, a firm offer would likely follow. “Blackstone strongly encourages the Board of Hipgnosis to recognise the significant increase in value available to all shareholders under the terms of [the $1.24-per-share offer], over the $1.16 as set out in the Concord Offer, and to work with Blackstone to reach agreement on a unanimously recommended Firm Offer in an expeditious manner,” the company said in a statement.

These moves take place after months of upheaval at Hipgnosis, which had launched a strategic review last year after a revolt by shareholders over a planned catalog sell-off and other business plans.