Hipgnosis boss ‘shares shareholder disappointment’ as star talent fails to revive flagging stock
The music impresario behind the Hipgnosis songs fund – which has bought up back catalogues from a host of major artists – bemoaned his outfit’s lagging share price in a market update yesterday.
“I share the disappointment of shareholders that the true value of our iconic songs is not being reflected in today’s share price,” Merck Mercuriadis said in a statement yesterday, saying the fund was being valued at a 12 per cent discount rate – “a deep discount compared to multiples currently being paid in the market”.
Mercuriadis’ complaints appeared to garner something of a positive response, with the share price jumping around three per cent by the close.
The fund – which has spent millions of dollars buying up music from artists including Mariah Carey, Barry Manilow and Fleetwood Mac’s Christine McVie, along with a host of other household names –showed royalties jumping 4.2 per cent and overall gross revenue up 7.5 per cent compared to last year.
Analysts at Numis said a rise in streaming across the globe represented a “positive” tailwind.