Justin Bieber Closes Sale to Hipgnosis for $200M — Company’s Biggest Deal to Date

Hipgnosis Songs Capital has closed its deal to buy 100% of Justin Bieber‘s publishing, as well as his artist royalties from his master recordings and neighboring rights, Hipgnosis has confirmed.

Click here to read the story at billboard.com.

Discussion Questions:

1. What is licensing?
2. What are royalties?
3. Why is licensing important in entertainment business?
4. Who is Hipgnosis?
5. Why would they want to purchase the rights to Justin Bieber’s catalog of music?
6. Why would Justin Bieber sell the rights to his music?
7. What is negotiation?
8. Why is negotiation an important part of the sales process?
9. How do you think negotiation impacts deals like this one between a company (Hipgnosis) and artist (Bieber)?
10. This news story suggests that Bieber’s catalog might be considered a riskier investment than an artist like Bruce Springsteen. Why is that and how did that perceived risk impact the sale price?