2 ms·

This is finance. "Innovative" means it puts more money in a banker's pocket.

• dangus 7y ago
  And more money in the investors' pockets. Essentially, the summary of this article is that this dude thinks he can leverage these song catalogs better than other investors. He's literally a music fund manager for music. His firm is "overpaying" for these back catalogs because he's essentially putting together a collection that might command more revenue than other "fund" managers, and possibly set up something of a targeted monopoly, and he's betting that they can extract more value than less competent managers and record labels. It wasn't directly addressed in the article but I suspect that the general strategy is to own the majority the sorts of songs that are more suitable for generating Synch fees. A big corporation is going to look around for a collection of songs that tend to do well in a TV commercial, for example. Perhaps they find that Hipgnosis happens to own all of them, and now they have to pay a higher rate, and all of a sudden the high price paid for this catalog doesn't seem like overpaying.
• deleted 7y ago
  [deleted]