Hipgnosis Songs Fund Stock Bounces Back After Near-20% Drop

Hipgnosis Acquires Sam Hollander's Music Catalog

The Hipgnosis Song Fund, which pools investments to purchase song catalogs, has experienced a solid stock-price rebound following a value decrease resulting from the coronavirus (COVID-19) crisis.

Hipgnosis stock, traded under the symbol SONG on the London Stock Exchange (LSE), had held steady at an average per-share price of about £105 (approximately $126) since its July 2018 debut on the public market. However, the company’s value, like so many others (and the economy as a whole) fell in response to rising coronavirus threats and concerns, as well as corresponding preventative measures.

Specifically, Hipgnosis stock dropped as low as £87.50 (a little over $105) on Tuesday, March 17th and essentially held the price until Friday, at which point shares jumped up to £93.50 ($112.21). During the last day or so, the stock has returned to (and occasionally surpassed; the market is still fluctuating) its former value, climbing as high as £108 (about $130) but generally holding steady at the aforementioned (pre-coronavirus) value of £105.

On the New York Stock Exchange (NYSE), leading concert promoter Live Nation has posted sizable gains of its own, though the company’s per-share price hasn’t yet returned to its pre-pandemic level. Nevertheless, Live Nation’s hiking back to about $45 represents a massive uptick from its 52-week low of $21.70 per share. Similarly, the brand will likely regain additional value once the COVID-19 pandemic subsides and government-mandated preventative measures are relaxed.

Hipgnosis has made a series of aggressive catalog acquisitions since its 2018 founding. Between these high-profile acquisitions (including the catalogs of Timbaland and former Blink-182 star Tom DeLonge, to name just some) and successful fundraising efforts, Hipgnosis executives are confident that their investment fund can prove profitable in the long term.

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Hipgnosis is reportedly considering pursuing another round of fundraising (having secured an additional $295 million in October 2019, bringing its equity-investment total to $800 million), but has yet to issue an official statement on the matter.

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