What's happened
Hipgnosis Songs Fund, a royalties investment fund, has cut the value of its music portfolio by more than a quarter, leading to a record low in its shares. The company also announced the suspension of dividends and plans to use free cash to reduce debt.
Why it matters
The valuation cut and dividend suspension by Hipgnosis Songs Fund have significant implications for investors and the music industry. The company's strategic review and debt reduction efforts will be closely watched to gauge its future performance and stability.
What the papers say
The Guardian highlights the significant drop in the valuation of Hipgnosis Songs Fund's music portfolio and the suspension of dividends. Sky News emphasizes the record low in the company's shares following the valuation cut and the halt in investor payouts.
How we got here
Hipgnosis Songs Fund, founded in 2018, has faced challenges including valuation concerns, board battles, and a shareholder revolt against a proposed catalogue sale deal. The company's decision to suspend dividends and focus on debt reduction comes amid ongoing strategic reviews and efforts to address financial pressures.
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