02 February 2024 , 11:16
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Merck Mercuriadis is stepping down as the boss of music royalties fund manager Hipgnosis Songs Management (HSM).
This comes as tensions rise between HSM and the board of Hipgnosis Songs Fund (HSF), which owns back catalogues for stars like Justin Bieber and Shakira. The fund is currently reviewing its strategy, which could lead to its assets being sold or the fund being closed down completely.
However, HSM's option to buy HSF's assets is said to be lowering the value of the portfolio and making it less attractive to potential buyers. Last month, HSF offered up to £20 million to anyone interested in buying its music catalogue. On Friday, HSM announced a shake-up of its leadership team, with Mr Mercuriadis stepping down as chief executive to become chairman.
He will be replaced by Ben Katovsky, who is currently the chief operating officer of HSM. The company said that Mr Mercuriadis will focus on working with songwriters and artists, while Mr Katovsky will manage the business and implement HSM's growth strategy.
Mr Mercuriadis stated: "One of our most important goals has been to bring an institutional rigour to Hipgnosis Song Management. Over the last 16 months, Ben (Katovsky) has done an amazing job building the team and HSM's capabilities to deliver the best possible service to our clients, and I'm certain this appointment makes us stronger."
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Mr Katovsky said: "I look forward to continuing to work closely with Merck, our senior leadership team, my colleagues, our songwriters, our clients and shareholders. particularly hope we will be able to work constructively with the board of Hipgnosis Songs Fund Ltd, as I believe that HSM is best able to deliver value for their shareholders whether they decide the company has a future as a long-term operation or wish to pursue the sale of assets following their strategic review."