Merck Mercuriadis will step down as chairman of Hipgnosis Song Management once private-equity firm Blackstone closes on its proposed acquisition of Hipgnosis Songs Fund, the parties announced Tuesday (7/2).

“Six years after founding HSM, I have decided that now is the right time for me to step back from my role as chairman," Mercuriadis said. "This is a timely opportunity for me to undertake a strategic shift of focus and to spend more time advocating on behalf of songwriters to ensure that they are properly compensated for their work."

"With Hipgnosis Songs Fund and Hipgnosis Songs Assets, we have created and transformed an outstanding catalog of rights into an unrivaled collection of iconic and culturally important songs by phenomenal songwriters I knew would be proud to stand next to each other," Mercuriadis continued. "HSM has been built on an ethos that has always put the songwriting community first and I am unwavering in the commitment I made to all our songwriters. I have always envisioned bringing songwriters together globally and organized to ensure they have a voice at the table, representing the consensus views of their community, in discussions about their compensation. With the next CRB four years away and ongoing legislation being discussed worldwide, the time to act is now.

"As Hipgnosis Songs Fund enters the next phase of its development, now is the time to hand the reins to a trusted and highly capable team," he concluded. "I am excited about the company’s future and its ongoing success with the support of Blackstone.”

HSM CEO Ben Katovsky added, "Merck’s vision and passion in creating Hipgnosis, assembling an extraordinary portfolio of iconic songs and campaigning for songwriters to be fairly paid has been instrumental in Hipgnosis’ journey to date."

Blackstone Tactical Opportunities Senior Managing Director Qasim Abbas continued, "On behalf of Blackstone, I would like to thank Merck for his support and contribution to HSM. Merck’s dedication to songwriters and his advocacy on their behalf is second to none and we respect and will seek to build on the platform he founded."

Last week Blackstone notified HSF that its latest offer of $1.6b is "best and final," locking in the price point and forestalling further negotiations for the acquisition.

According to the Financial Times (paywalled), "A group of U.S. and U.K. hedge funds have acquired a potential blocking stake in Hipgnosis ahead of a crucial shareholder vote." Blackstone needs 75% approval from shareholders in the upcoming vote. By declaring "best and final," Blackstone has prevented attempts to drive up the value of HSF with downvotes. The declaration also keeps Blackstone from increasing its offer or even submitting a new one—if shareholders vote no, there will be no new deal from Blackstone.