L.A. Reid Sells 100% Of His Catalog to Hipgnosis

Reality

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He's likely selling at or near peak in terms of value of / multiple on the catalog. Royalty streams from music publishing of songs that are classics / staples are pretty much predictable, fixed income assets. There's a scramble for safe yield right now from investors because, well, it's 2020 and what is safe anymore?

The market's highly volatile and if you prefer predictable, steady income there's not a ton of places to go. Corporate bonds are shaky due to the shaky macroeconomic environment, and treasury bonds have really poor returns. The low interest rate environment also means that there's not a ton you can get on your money by parking it at the bank.

This is a great investment to make and the multiples / premiums investors are willing to put on something like this is probably sky high right now.
 

Tasha And

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There is a lot of generational wealth to be had by owning publishing. Is something a lot of people don’t think about but owning publishing can make you extremely wealthy.
Depending on what they do with the bag, selling the publishing rights could and should be an even greater builder of generational wealth. They can diversify their investments instead of having all of it tied into one industry/group of artists.
 

King

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I need someone to explain this. It's happening like every month.
If you look at newer pop music, a lot of it is white washed regurgitated black music.

Might also be liability for any potential court cases of music sounding exactly the same

Like seriously, this one song that sampled Marvin Gaye spent like 50+ weeks on the top 40
 

Counter Racist Male

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Depending on what they do with the bag, selling the publishing rights could and should be an even greater builder of generational wealth. They can diversify their investments instead of having all of it tied into one industry/group of artists.

I just think that it’s a good idea if at all possible if Black artist hold on to the publishing. Put it in a trust or something like that would try to hold onto most of it if you can. From what I understand James Brown sold all his publishing for over $100 million just before he died.
 

King

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That’s always been the case.What are you talking about blurred lines?
Shyt is different now - the venture capitalists got to it. Vultures creating exponential generational wealth off this.

Hipgnosis Songs Fund is a British Guernsey-registered music IP investment and song management company founded by Merck Mercuriadis and co-founded by Nile Rodgers in 2018. Focused on songs and associated musical intellectual property rights, it was founded on the premise that hit songs are long-term predictable assets unaffected by economic cycles that will increase in value as the worldwide music streaming market grows.”

Don’t be surprised when they get some goofy looking Bristish CAC Bobby Brown rip-off doing hit signles with New Jack Kpop Bands.

Shyt just look at KPOP as a whole they literally stole everything black from the 90s to the 2000s.
 

Clark Wayne

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First I ever heard of this company and didn’t know about other major artist selling their catalogue. I’m definitely conflicted about it and unless the offer was in the 8 figures or you in financial trouble I don’t see the reason to sell.
 
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