Sony Nears $4 Billion Deal for Blackstone's Recognition Music Group Catalog

Sony Music is in exclusive negotiations to acquire Recognition Music Group from Blackstone Inc. in a transaction valued between $3.5 billion and $4 billion, according to people familiar with the matter. The deal, if completed, would be structured through a joint venture between Sony Music and Singapore's sovereign wealth fund GIC.

The Details

Recognition Music Group holds ownership or management rights to more than 45,000 songs spanning over 145 catalogs, including works by Justin Bieber, Neil Young, Rihanna, Beyoncé, Leonard Cohen, and Justin Timberlake, according to Music Business Worldwide. Blackstone assembled the portfolio over several years, spending approximately $800 million on music assets through Hipgnosis Songs Capital beginning in 2021. In July 2024, Blackstone acquired Hipgnosis Songs Fund for $1.58 billion. The firm consolidated the former Hipgnosis assets under the Recognition Music Group brand in March 2025.

Bloomberg, citing people familiar with the matter, reported that Sony and Blackstone are pushing to finalize the agreement within the next seven days, though the talks could still collapse. At least one other entity made an unsolicited offer believed to be higher than Sony's bid, but Blackstone declined to share data with some rival bidders, those people said.

Sony Music Publishing already administers the Recognition catalog, giving the company existing operational familiarity with the assets. The reported acquisition would mark Sony's third and largest purchase from the former Hipgnosis portfolio. In June 2025, Sony Music Publishing acquired Hipgnosis Songs Group for approximately $70 million. That was followed by a $200 million-plus deal in February 2026 that included rights to works by Jeff Bhasker and Jack Antonoff.

In January 2026, Sony formed a $2 billion to $3 billion music rights acquisition joint venture with GIC, the Singaporean sovereign wealth fund that is now partnering on the Recognition deal. Billboard reported on May 1 that Sony was negotiating a deal for Recognition's assets, ahead of Bloomberg's May 6 report confirming the exclusive negotiations.

Context

The Recognition catalog has been used to back asset-backed securitizations, including a $1.47 billion bond deal in November 2024 and a $372 million issuance in July 2025, according to Music Business Worldwide. A third-party valuation as of March 31, 2025 valued the catalog at $2.95 billion inclusive of additional assets, Music Business Worldwide reported, citing a Kroll report.

Under Merck Mercuriadis, Hipgnosis had previously acquired Bieber's catalog for more than $200 million and Justin Timberlake's songs in a deal worth $100 million.

Following the May 6 reports, Sony Group Corporation stock gained approximately 2.8 to 3 percent, according to Investing.com and Stocktwits.

There are conflicting reports about the exact deal valuation, with Bloomberg reporting a range of $3.5 billion to $4 billion and Music Business Worldwide characterizing the figure as up to $4 billion. Additional artists, including Shakira, have been mentioned in secondary sources but have not been confirmed by Bloomberg.

What's Next

The parties are working to finalize the agreement within approximately seven days, though the deal remains subject to collapse, according to people familiar with the matter. The exact final purchase price within the reported range, the specific closing timeline, and regulatory approval requirements have not been disclosed. The identity of the rival bidder or bidders who submitted unsolicited offers also remains unknown. The full list of artists and copyrights included in the deal has not been confirmed.