Merck Mercuriadis calls Andrew Watt “arguably the most important writer and producer in the world today”. Now, Hipgnosis Songs Fund has acquired 105 songs from Watt – together with each the author and writer’s share of the compositions.
These songs embody Watt’s stake in big hits akin to Señorita by Shawn Mendes and Camila Cabello, Havana by Camila Cabello (feat Young Thug), Let Me Love You by DJ Snake (feat Justin Bieber), Eastside by Benny Blanco, Halsey and Khalid, and Youngblood by 5 Seconds Of (*105*).
Hipgnosis hasn’t disclosed what it paid for the songs from Watt (actual title Andrew Wotman, who’s managed by Scooter Braun). But MBW could make an informed estimate – and we consider it’s upwards of $45 million.
A submitting this morning (May 5) reveals that the Watt catalog acquired by Hipgnosis generated $1.27m in 2017, $3.41m in 2018, and $4.34m in 2019.
Taken as a blended common throughout these three years, that comes out at a imply annual income of just about precisely $3m.
Hipgnosis has beforehand confirmed that it paid a median “blended acquisition multiple of 14.76x historic annual income” for its owned catalog (as of September 2020).
We can due to this fact be fairly assured the Andrew Watt deal price Hipgnosis a minimum of $45 million (at a 15X occasions a number of of that $3m).
Considering Watt’s standing as a famous person trendy author, this determine might even have as much as or over $60 million (for a 20X a number of).
(Once once more: these are MBW estimates, and haven’t been verified by Hipgnosis.)
The catalog acquired by Hipgnosis consists of Watt songs written as much as mid-2019.
It due to this fact doesn’t embody a few of Watt’s more moderen hits – akin to Take What You Want by Post Malone with Ozzy Osbourne and Travis Scott, plus 5 songs produced by Watt on Justin Bieber’s new album, Justice, and contemporary tracks from Miley Cyrus (Midnight Sky, Prisoner) and Dua Lipa (Break My Heart).
However, Hipgnosis has secured an identical proper on these tracks, in addition to Watt’s future songs.
Other Watt hits included in the deal embody It Ain’t Me by Kygo and Selena Gomez, plus Wolves by Selena Gomez and Marshmello.
Watt has additionally written and/or produced hit songs for expertise together with Avicii, The Chainsmokers, Ellie Goulding, and Rita Ora.
“[Watt] is arguably the most important writer and producer in the world today and I don’t use those words lightly.”
Merck Mercuriadis, Hipgnosis
Merck Mercuriadis, Founder of The Family (Music) Limited and Hipgnosis Songs Fund Limited, stated: “It is amazing to be welcoming Watt to the Hipgnosis Family just as he has been awarded the ‘Producer Of The Year’ Grammy for his work with Miley Cyrus, Post Malone et al, and as he has been Number 1 all over the world with Justin Bieber.
“He is arguably the most important writer and producer in the world today and I don’t use those words lightly. Watt and Scooter are an incredibly important part of our future.”
Andrew Watt stated: “Joining the Hipgnosis family was a no brainer for me. Merck is one of the most passionate people about music I have ever met. Every conversation we have ever had starts with 30 minutes on The Ramones or The Clash…and then we meet at the record store to dig through the crates and talk shop. He is in the process of changing the game for songwriters. He leads his company by putting the creators first.”
Scooter Braun stated: “Andrew is one of the most groundbreaking producers and songwriters of our time, and I’ve had the honor to have a front row seat to so many of his record-breaking achievements in the industry.
“His talent and creative process is unparalleled and we look forward to what the future holds in this new partnership with Merck.”
“Merck is in the process of changing the game for songwriters. He leads his company by putting the creators first.”
Today’s news comes after MBW revealed on Monday (May 3) that Hipgnosis had simply struck a deal in the area of $150 million for a sought-after rock catalog.
This has since been revealed because the Red Hot Chili Peppers track catalog.
Andrew Watt began his skilled music profession as a guitarist for different artists together with Justin Bieber earlier than founding rock band, California Breed, in 2013.
In 2015, Watt’s friendship with Justin Bieber acted as a catalyst for Watt to begin writing and producing with Bieber alongside his solo work.
In the Hipgnosis deal, Watt was represented by supervisor Scooter Braun at SB Projects and lawyer Doug Mark.Music Business Worldwide