Merck Mercuriadis resigns as Chairman of Hipgnosis Song Management

The buyer of music catalogs Hipgnosis Songs Fund (HSF) is currently being taken over by the investment firm Blackstone.

The latter has made it clear that he intends to continue the relationship with Hipgnosis Song Management (HSM), HSF’s investment advisor chaired by founder Merck Mercuriadis.

Today there is a development: Mercuriadis himself will not be involved, as he will step down from his position as Chairman of HSM if and when the acquisition is completed.

“As the Hipgnosis Songs Fund enters the next phase of its development, now is the right time
I am handing over the reins to a trustworthy and highly qualified team. I am looking forward to the future of the company
and its continued success with the support of Blackstone,” Mercuriadis said in his statement.

He also gave a clear indication of his next steps.

“This is a good opportunity for me to strategically shift my focus and spend more time advocating for the interests of songwriters and ensuring they are fairly compensated for their work,” Mercuriadis said.

“I have always envisioned bringing together and organizing songwriters worldwide to ensure they have a voice in discussions about their compensation and represent the consensus opinion of their community. With the next CRB in four years and ongoing legislation being discussed around the world, now is the time to act.”

Some kind of global organization representing songwriters? That would be an interesting approach, even if we might be reading between the lines a little wrong.

In the meantime, the takeover must be completed. HSF shareholders will vote this month on the final offer from Blackstone’s Lyra Bidco Limited. For it to go through, 75% of them must agree.

Mercuriadis’ decision to resign as chairman of the HSM may have been made with the intention of simplifying this process.

“Merck’s commitment to songwriters and his dedication to them is unmatched and we
respect and will look to build on the platform he founded,” added Qasim Abbas, Senior MD of Blackstone Tactical Opportunities.

“We are committed to this asset class and have (through Hipgnosis Songs Assets) the
Catalogs of some of the world’s most important songwriters and artists in the three years
We have entered into a partnership with Merck and HSM.”

“With a strong management team, the company is now well positioned to
in the growing music rights market.”