Hipgnosis Songs Share Discussion Threads

[hohum1] 11/12/2023 12:58

What happened to JPMorgan and RBC? Jumped or pushed?

[laughton] 11/12/2023 10:43

Oh dear. Even worse, maybe.

[hohum1] 11/12/2023 10:24

Laughton: 14% discount to book value. After the impact of gearing and costs that’s probably 20% off NAV

[spectoacc] 11/12/2023 10:20

Is that sale at £1,000 per song?

[tiltonboy] 11/12/2023 09:09

It's at Sep valuation which we haven't seen yet. Had it already been cut at that stage as well...

[laughton] 11/12/2023 08:26

Maybe that means we should look at NAV being out by 14.2% to get a realistic figure?

[unastubbs] 11/12/2023 07:42

Ah yes sorry my mistake 😔

[grahamg8] 11/12/2023 07:34

Well I thought it said 14.2% discount to 30 September book.

[unastubbs] 11/12/2023 07:29

Sold at 9% discount...

[jeffian] 23/11/2023 11:14

I think we can see a pattern of behaviour here!

"Further to the disclosure in the 2023 Annual Report, on page 100, Hipgnosis Music Limited (in liquidation since March 2018) ("Hipgnosis Music Limited") has served proceedings against Mr Mercuriadis, the Investment Adviser and the Company in the English High Court. In summary, Hipgnosis Music Limited alleges a diversion of business opportunity from Hipgnosis Music Limited (of which Mr Mercuriadis was previously a director) to the Company and the Investment Adviser and also alleges that the Company unlawfully assisted Mr Mercuriadis with, or received, this alleged diversion. Mr Mercuriadis, the Investment Adviser and the Company deny such claims and intend to vigorously defend them. The Company is not insured as to the costs of dealing with this claim."

Re the final comment about costs, although "the Company" is joined in the action, one wonders why Merck's own Management Company isn't picking up the tab due to his misdemeanours.

[grahamg8] 08/11/2023 07:08

Thanks hohum.

[jeffian] 07/11/2023 22:55

You can also bet that it is probably to a fund managed by Merck. This guy and his mates should never be let anywhere near a public company and I'm surprised Blackstone has anything to do with him.

[f880gna] 07/11/2023 20:30

If they do sell some of the catalogues it'll be to catalogue acquisition specialists like BMG and you can bet they won't be paying what Hipgnosis paid.

[hohum1] 07/11/2023 10:06

You are dead right, Grahamg8. Too many investors don’t look at balance sheets until, suddenly, they realise that the NET in NAV means that after the debt providers have taken their slice, there may not be much left

[feddie] 07/11/2023 08:41

Yes, great news. Gearing for a sale.

[noiseboy] 07/11/2023 08:00

2 ex directors from Round Hill Music on board , good news IMHO

[grahamg8] 07/11/2023 07:31

New Directors on board. Time for MM to dust off his cv. New manager to be appointed next. Then some token sales to prove asset value. We can but hope.

[f880gna] 06/11/2023 20:00

A grift from beginning to predictable end. Who would have thought a business run by an artist manager wouldn't turn out to be quite what was purported?

[grahamg8] 06/11/2023 17:10

Sorry apollo it's far worse than that because of the debt. You have to knock the % off the gross value of the catalogues and then take off the undiscounted debt. SONG is very highly geared and so quite a small change in the catalogue value/revenue income will be catastrophic. The banks get their pound of flesh first, and failing that they end up owning the entire company. Shareholders walk away with nothing.

[apollocreed1] 06/11/2023 15:13

I think at a 50% discount to NAV there is still a lot of value here. The catalogues were valued by the same valuer that valued RHM and no suspicions were raised about those valuations. So even if it gets wound down at a 20% discount to NAV, that's still a 30% profit.
Then we have large Investors like AVI teaming up to revamp the board and so I do think that they will sort it out. Ruffer also has a large position.

[misterd1] 06/11/2023 13:20

interesting point epo as it can also be read the other way round

i.e. if a song does well then additional monies become due above that hurdle level

So even a simple fact like that is not crystal clear

No trust in this lot whatsoever

[epo001] 06/11/2023 10:38

The point of buying in here was a steady uncorrelated income. Now what?

"Performance hurdles in acquisition agreements." Meaning what? A minimum level of payment to the artist is expected? Catalogue ownership reverts to the artist if there is underperformance?

Have they bought these catalogues or are they merely leasing them?

Why would the share price go up from here?

[jamtin] 06/11/2023 10:35

I've sold out. GL to holders but I have just lost all confidence in management.

[williamcooper104] 06/11/2023 10:03

You forget Stage 5 Mr M goes and bids the assets out of Admin or credit bids the remaining assets prior to admin