Hipgnosis Song Management founder Merck Mercuriadis is stepping into the role of chairman of the company while President/COO Ben Katovsky will become Hipgnosis’ new CEO.

Mercuriadis will continue to lead engagement with songwriters, artists and the music industry, generate opportunities to increase consumption and enhance the value of HSM’s client portfolios, lead acquisitions and advocate on behalf of songwriters, artists and HSM.

Katovsky will assume responsibility for executive management of the business.

“I'm proud to be asked to lead HSM through its next chapter, building on all that Merck has achieved," Katovsky said. “In my time in the music industry, I haven’t come across anyone who can match his rapport and relationships with songwriters and artists. HSM has two clients, which we are proud to serve, and shareholders who are clear in their vision, ambition and ongoing commitment to grow music as an asset class through HSM. I am confident that HSM is already the best platform for both capital deployment and Song Management to create value from the songs we manage. I am excited to have this opportunity to take it to the next level in its evolution.”

Katovsky and Mercuriadis will continue to serve as directors and members of the board of HSM.

Qasim Abbas, senior managing director of Blackstone Tactical Opportunities, said: “Merck’s commitment to representing songwriters drives everything that he does—he is a great business partner and I look forward to working with him in his role as chairman. Ben is an impressive leader with significant operational expertise and sector experience. He has the support of a strong senior management team behind him, focused on delivering the highest standard of service to HSM’s clients.”

Here is Mercuriadis’ memo to the staff:

Good morning everyone,

We are six years old now and have accomplished a lot in that period, establishing songs as an asset class and becoming the premiere company for acquiring and managing songs. We have $3 billion in assets under management that are among the most successful and culturally important songs of all time. We have a terrific and supportive partner in Blackstone and are hopeful that we will resolve our issues with Song in a positive manner.

We’ve had a number of good people help us along this journey who've made important contributions, but no one has made a bigger impact on this company than Ben Katovsky. In the 16 months he’s been here he’s been more like a partner to me than an employee. His contributions have been immense and I’m proud to announce that subject to approval by the Song board, he will be our new CEO and I will become our chairman.

This will allow us to go forward firing on all cylinders, with Ben running the executive functions of the company and me focused on our songwriters and songs and getting more out of them as well as leading our acquisitions and advocacy. I'm certain this will make us stronger and combined with what I believe is the best team of people we've ever had, I'm excited for our future.

As I mentioned, we are hopeful we can reach a positive resolution with Song, but whatever may happen, it’s important to remember that we are a two-client company and as you will see from the attached release, which was published this morning and outlines all of the above, our partners at Bx are also excited about the future.

It remains only for me to thank you all for your continued efforts and ask you to please join me in congratulating Ben. We both look forward to continuing our work with you to make HSM the best that it can be for our songwriters and our clients!

Best wishes,

Merck