Sources confirm that Sony Music Group is in talks to acquire Recognition Music Group Hollywood Reportermarking the latest 10-figure music deal to hit the market this year following Primary Wave’s acquisition of Kobalt and BMG’s acquisition of Concord.
The deal, which has not yet been finalized, will primarily include copyrights to some of the most popular acts in music including Justin Bieber, Neil Young and the Red Hot Chili Peppers. Financial details of the sale are unknown, although Bloomberg reported that the deal would be worth between $3.5 billion and $4 billion. But other sources indicated that this number would be high for the acquisition. (Bulletin boardwhich first reported news of a potential plea deal last week, reported a valuation of about $2 billion or more.)
Both Sony and Blackstone declined to comment.
Recognition Music Group dates back to 2018 under the name Hipgnosis Songs founded by Merck Mercuriadis. With catalog acquisitions on the rise during the pandemic, Hipgnosis has been one of the most aggressive buyers in the industry, paying $200 million for Bieber’s catalog and also inking deals with the likes of Justin Timberlake, Lindsey Buckingham, the Chili Peppers and Timbaland among many others. Blackstone and Hipgnosis announced a $1 billion deal in 2021, and in 2024, Blackstone acquired Hipgnosis, with Mercuriadis later stepping down. Hipgnosis has become confessional music in the past year.
Recognition has an existing relationship with Sony, having sold Hipgnosis Songs Group – the music publishing company formerly known as Big Deal Music – last year, and Sony Music serves as Recognition’s publishing administrator as well.
Recognition isn’t Blackstone’s only musical interest. The private equity giant also owns SESAC, the performing rights organization for the likes of Bob Dylan, Adele and others.
The deal is one of several major music company acquisitions to emerge in 2026. Primary Wave announced its purchase of music publisher Kobalt in March, transforming the company into one of the largest companies in the music business. Meanwhile, BMG announced at the end of April that it had acquired independent music giant Concord, a move that will transform BMG into the music industry’s undisputed largest independent record label.
