Catalog product

Blackstone among bidders for Pink Floyd catalog – sources

A woman is silhouetted at the Pink Floyd: Their Mortal Remains exhibition at the V&A Museum in London, Britain May 9, 2017. REUTERS/Stefan Wermuth

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Aug 24 (Reuters) – Blackstone Inc (BX.N) is among many bidders for the catalog of British rock band Pink Floyd, people familiar with the matter said on Wednesday, as the private equity firm seeks to strengthen its music rights collection.

The process is underway, and Blackstone isn’t close to closing a deal for the band behind hits like “Wish You Were Here,” “Comfortably Numb” and “Another Brick in the Wall,” the people said.

Blackstone declined to comment, while representatives for Pink Floyd did not immediately respond to a request for comment.

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The Financial Times reported earlier that the buyout firm would strike a deal through Hipgnosis Song Management that could value the band’s songs at almost half a billion dollars. https://on.ft.com/3pJQhA4

Last year, Blackstone took a stake in Hipgnosis as part of a partnership that planned to deploy around $1 billion to buy music rights and record songs. Read more

Founded by former Elton John manager Merck Mercuriadis, Hipgnosis advises the UK-listed Hipgnosis Songs Fund (SONG.L), which allows investors to get a share of music royalties.

Private equity interest in music catalogs has grown in recent years due to steady revenue from royalties and the rise of online streaming. KKR & Co Inc last year bought a majority stake in OneRepublic artist Ryan Tedder’s catalog valued at $200 million. https://reut.rs/3pI772k

A deal with Pink Floyd would also bolster Blackstone’s broader push into digital content, with the buyout firm last year agreeing to buy the bulk of Hollywood actress Reese Witherspoon’s media company Hello Sunshine. https://bit.ly/3pFp4yz

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Reporting by Mehnaz Yasmin in Bengaluru and Chibuike Oguh in New York; Editing by Aditya Soni

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