Music executive Jimmy Iovine has sold off his worldwide producer royalties to the Hipgnosis Song Fund.
The American entrepreneur is the latest artist to sell the rights to his future royalties to the investment and song management company, which purchased them for an undisclosed sum.
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Hipgnosis, which has been listed on the London Stock Exchange since July 2018, allows investors to see an income from music royalties.
Iovine said of the deal: “I’m happy that my work as a producer with so many great artists has found the right home with Merck and Hipgnosis. I am going to use the proceeds from the deal to help Iovine Young Academy’s initiative to build a high school in South LA as part of the Iovine Young Academy at USC and continue our efforts to support education.”
Mercuriadis added that he has “been glued to everything Jimmy does” and that it is “an honour to now be a custodian of his incredible work on these iconic album”.
“His incomparable success with Interscope and Beats means that he would never have to make a deal for money again,” Mercuriadis said, “but leave it to Jimmy to figure out the most efficient way possible to use his producer royalties to build a best-in-class high school in the inner city and once again make a massive difference, as he has throughout his life.”
Iovine is best known as the founder of Interscope Records – home throughout the years to the likes of 2Pac, Marilyn Manson, Eminem, Nine Inch Nails and more – as well as the co-founder of Beats By Dre with Dr. Dre, which was sold to Apple for $3 billion in 2014.
As a producer and engineer, he rose to prominence as an engineer in the 1970s, working with John Lennon (‘Walls & Bridges’, ‘Rock & Roll’) and Bruce Springsteen (‘Born To Run’, ‘Darkness On The Edge Of Town’).
In 1978, he produced Patti Smith’s ‘Easter’ and its UK Top 5 hit single ‘Because The Night’. From there, he went on to produce records for Tom Petty And The Heartbreakers, Dire Straits, Stevie Nicks, U2, Simple Minds and more.
Iovine co-produced Eminem’s 8 Mile film in 2002, which grossed over $240 million. The soundtrack has sold over 15 million copies worldwide. He followed this up by co-producing 50 Cent‘s Get Rich or Die Tryin’ film, based on the rapper’s album of the same name. Iovine also executive produced the soundtrack which has sold over 3 million copies globally.
It also purchased 42 catalogues comprising more than 33,000 songs from Kobalt Music Copyrights S.à.r.l in November. Purchased for $322.9 million, the sale included songs by Fleetwood Mac, 50 Cent, Beyoncé, Mariah Carey, and many others.