What went down this year and how did it all go awry for Hipgnosis? Following its IPO in 2018, Hipgnosis embarked on a bullish spending spree to beef up its catalogues. It spent nearly
Towards the end of this period, in late 2021, asset manager
After the pandemic, Hipgnosis enjoyed a honeymoon period, as the music industry cashed in on a boom in the value of music rights, spurred on by the continued popularity of streaming platforms.
Hipgnosis shares peaked in
But everything really began to come crashing down this year.
As the share price showed no signs of climbing, strangling fundraising efforts, investors urged the fund to sell some of its catalogues.
In October it scrapped an interim dividend payment due to concerns it would have to breach the terms of its debt covenants.
This was due to a change in rates by the US Copyright Royalty Board, meaning that independent portfolio valuer,
After a rocky year, the future of Hipgnosis is touch-and-go and Mercuriadis' position is tenuous, as he could be fired by the new board to appease angry shareholders.
(c) 2023 City A.M., source