Hipgnosis Songs Fund's lower valuation validated investors' concerns that the fund should have had a lower valuation all along.
of the company’s catalog by 26% last week, it admitted something investors had long believed. Although the London-listed royalty fund had amassed an enviable collection of songs since going public in 2018, changes in market conditions and the very nature of some of those rights may have merited a significantly lower fair value all along. , among other A-list artists and songwriters — at $1.8 billion to $2.06 billion. As recently as Sept. 30, the catalog was given a fair value of $2.
Such a large decline in the valuation suggests the various experts had differing opinions on both the catalog’s revenues and the riskiness of those revenues. Shot Tower calculated HSF’s net revenue after third-party royalties and administration expenses at $121.7 million for the 12-month period ended June 30. The accounting firm BDO calculated a similar amount — $119.4 million for the 12-month period ended Sept. 30 — for a quality of earnings analysis. put HSF’s annual revenue at $134 million .
Until this week, HSF had been valued using an 8.5% discount rate since the Sept. 30, 2020, valuation conducted by Citrin Cooperman. FTI Consulting’s valuation of a Kobalt portfolio used in an asset-backed security offering in February used an 8.5% discount rate for songs older than 18 months . FTI’s valuation of the portfolio behind Concord’s $1.65 billion ABS used an 8.25% discount rate for catalog songs .
Shot Tower’s discount rate took a variety of factors into account, according to the press release, which could explain how it got to 9.63%. For example, Shot Tower found that 65% of HSF’s revenue derived from passive rights where the company does not control publishing, administration or licensing. In many cases, HSF owns only a songwriter’s share rather than the publisher’s share, or the producer’s royalties from a sound recording.
Norge Siste Nytt, Norge Overskrifter
Similar News:Du kan også lese nyheter som ligner på denne som vi har samlet inn fra andre nyhetskilder.
Taylor Swift's 'Eras Tour' Surprise Songs: Which Songs Are Left?Maddie Ellis is a weekend editor at TODAY Digital.
Les mer »
Gender bias leads to lower-rated female films, researchers say'Barbie' might have won the dance-off against 'Oppenheimer' at the box office, but a new Robert H. Smith School of Business study may explain why the hot-pink bubble burst well before this Oscar weekend.
Les mer »
Woman loses legs after boyfriend allegedly pushes her onto tracks in Lower ManhattanPolice say the woman got into an argument with her boyfriend who then pushed her off the platform. The suspect is still at large.
Les mer »
Jack Quaid’s Boimler Finally Equaled His Star Trek Doppelganger In Lower Decks Season 4All the latest movie news, movie trailers & reviews - and the same for TV, too.
Les mer »
These 5 Daily Habits Can Lower Your Dementia Risk, New Research ShowsDigital destination for sophisticated men & women. Live your best life with expert tips and news on health, food, sex, relationships, fashion and lifestyle.
Les mer »
Bills that could lower property insurance costs in Florida head to Gov. DeSantisThe Florida Senate is moving forward with several bills that could lower property insurance costs.
Les mer »