Future of Hipgnosis boss in doubt as board launch 'strategic review'

THE boardroom battle over the future of Merck Mercuriadis, founder of music rights business Hipgnosis, came to a head today, as directors said they are considering putting somebody else in charge of managing its collection of hits by artists from Barry Manilow to 50 Cent.

- Daniel O’Boyle

The Hipgnosis Songs Fund faces a key vote on its future on 26 October, as investors question a tumbling share price, a £440 million sale of thousands of songs to a different Mercuriadis-run venture, and an inaccurate valuation of an upcoming windfall that meant the fund could not afford to pay a dividend.

The Hipgnosis portfolio was valued at $2.8 billion (£2.3 billion) in its last annual results, but its share price values the fund at less than half of that.

Ahead of the vote on whether to continue the fund, its board has launched a strategic review, which will consider all options including a change in management. Those options may also potentially include a different management arrangement that keeps Mercuriadis involved. Though the announcement did not mention a sale as one option, it cannot be ruled out.