As the leading music IP investment company Hipgnosis Song makes a roaring success, former president of Geffen Records, Neil Jacobson, who established his own songwriter-producer management company in 2019, is reportedly planning to launch an ambitious IPO on the New York Stock Exchange worth $200 million for his new company named the Music Acquisition Corporation.
On the competitive terrain, Hipgnosis has made hefty investment of over $1.7 billion towards acquisition of catalogs from eminent artists including Barry Manilow, Neil Young along with less prominent but successful producers and songwriters such as Poo Bear, Timbaland, Mark Ronson, Eurythmics Dave Stewart and several others. However, Jacobson still holds a strong position in the industry.
As per a SPAC S-1 prospectus for the new firm of Jacobson, it is raising funds for purchasing unidentified music assets after the IPO launch and not just copyrights. The prospectus also outlines that the company is planning to acquire audio content, for which it is likely to explore potential companies serving IP owners, content creators and consumers by opening new opportunities for content discovery and monetization.
With regards to technology, its verticals of interest are royalty free sample libraries (for production music), music catalog analysis and organization tools, trend research companies, data science, blockchain, and AI-driven sources. Speaking of social media, it is seeking companies like TikTok and Triller. Regarding consumers, it cites examples of Beats by Dre, and Peloton.
The prospectus, dated January 15, states that its management team has an extensive experience pertaining to acquisition, operation, and business expansion in music sector, along with a wide network of major industry executives, investors, entrepreneurs, and deal makers, which would offer it access to lucrative opportunities of business combination and will enable it to succeed in accomplishing an initial business combination.
As per the sources of knowledge, the company will be headed by Jacobson as the CEO and chairman, Todd Lowen, a Lehman Brothers and Barclays Capital veteran. Further, the directors will be Michael Levitt the Kayne Anderson Capital Advisors CEO, Tunde Balogun, co-founder and president of versatile music company LVRN managing 6lack and Summer Walker, and TV-film producer Ben Silverman among others.