Hipgnosis mulls equity raising to fund £1bn of song deals

The FTSE 250 company buys the rights to songs by artists such as Mark Ronson, Bill Withers and Bon Jovi's Richie Sambora and receives royalties from sales and other uses of the songs.

Hipgnosis said: "The company is exploring the most appropriate way of funding further investments, with a view to delivering further value for its shareholders, including the use of borrowings … or an equity fundraise. The company's new borrowing policy, allowing it to borrow up to 30% of its assets, was approved at a shareholder meeting on Thursday.

The company was boosted in February by a US Copyright Board ruling that will increase songwriter payments from streaming companies such as Spotify. Streaming income has helped offset reduced revenues from live performances and commercial licensing during the Covid-19 crisis.