Merck Mercuriadis calls Andrew Watt “probably the most important writer and producer in the world today”. Now the Hipgnosis Songs Fund has acquired 105 songs from Watt – including the writer’s and editor’s share in the compositions.
These songs include Watt’s share of big hits like Señorita by Shawn Mendes and Camila Cabello, Havanna by Camila Cabello (feat Young Thug), Let Me Love You by DJ Snake (feat Justin Bieber), Eastside by Benny Blanco, Halsey and Khalid. and young blood by 5 seconds of summer.
Hipgnosis has not disclosed what it paid for the songs by Watt (real name Andrew Wotman who is managed by Scooter Braun). But MBW can make an educated guess – and we believe it’s over $ 45 million.
A filing this morning (May 5) shows that the Watt catalog acquired by Hipgnosis grossed $ 1.27 million in 2017, $ 3.41 million in 2018, and $ 4.34 million in 2019.
Measured as a mixed average over these three years, the average annual revenue is almost exactly $ 3 million.
Hipgnosis previously confirmed that it paid an average “mixed acquisition multiple of 14.76x historical annual income” for its own catalog (as of September 2020).
We can therefore be fairly certain that the Andrew Watts deal cost Hipgnosis at least $ 45 million (at a 15 times multiple of that $ 3 million).
Given Watt’s status as a modern day superstar writer, that number can even go as high as or over $ 60 million (for a 20-fold multiple).
(Again, these are MBW estimates that Hipgnosis has not verified.)
The catalog purchased by Hipgnosis contains Watt songs that were written until mid-2019.
It therefore doesn’t include some of Watt’s newer hits – like Post Malone’s Take What You Want starring Ozzy Osbourne and Travis Scott, as well as five songs produced by Watt on Justin Bieber’s new album Justice and fresh tracks by Miley Cyrus (Midnight Sky, Prisoner) and Justice Dua Lipa (Break My Heart).
However, Hipgnosis has secured a fitting right on these tracks in addition to Watt’s future songs.
Other Watt hits included in the deal include It Ain’t Me by Kygo and Selena Gomez and Wolves by Selena Gomez and Marshmello.
Watt has also written and / or produced hits for talent including 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 these words lightly. “
Merck Mercuriadis, Hipgnosis
Merck Mercuriadis, Founder of The Family (Music) Limited and Hipgnosis Songs Fund Limited, said, “It is amazing to welcome Watt to the Hipgnosis family as he wins the Grammy Producer of the Year for his work with Miley was Cyrus, Post Malone et al. And since he was number 1 in the whole world with Justin Bieber.
“He’s arguably the most important writer and producer in the world today, and I don’t use those words lightly. Watts and scooters are an incredibly important part of our future. “
Andrew Watt said: “Joining the Hipgnosis family has been a breeze for me. Merck is one of the most passionate people I have ever met about music. Every conversation we’ve ever had starts with 30 minutes at The Ramones or The Clash … and then we meet at the record store to dig through the boxes and talk. He is about to change the game for songwriters. He runs his business by putting the creators first. “
Scooter Braun said, “Andrew is one of the most groundbreaking producers and songwriters of our time, and I was honored to have a front row seat for so many of his industry records.
“His talent and creative process are unparalleled and we look forward to the future of this new partnership with Merck.”
“Merck is about to change the game for songwriters. He runs his business by putting the creators first. “
The news today comes after MBW announced on Monday (May 3rd) that Hipgnosis has just closed a $ 150 million deal for a coveted rock catalog.
This has since been revealed as the Red Hot Chili Pepper’s song catalog.
Andrew Watt signs his new Hipgnosis contract with Merck Mercuriadis (R) in Los Angeles – Scooter Braun is watching in the background
Andrew Watt began his professional music career as a guitarist for other artists, including Justin Bieber, before forming the rock band California Breed in 2013.
In 2015, Watt’s friendship with Justin Bieber was a catalyst for Watt, writing and producing alongside his solo work with Bieber.
In the Hipgnosis deal, Watt was represented by manager Scooter Braun at SB Projects and attorney Doug Mark.Music business worldwide