The Anthony Kiedis-fronted band is selling the publishing rights to its songs music investment firm Hipgnosis.
The Red Hot Chili Peppers are an American rock band formed in Los Angeles in 1983. Their music incorporates elements of alternative rock, funk, punk rock and psychedelic rock. The band consists of vocalist Anthony Kiedis, bassist Flea, drummer Chad Smith, and guitarist John Frusciante. With over 80 million records sold worldwide, the Red Hot Chili Peppers are one of the best-selling bands of all time. They are the most successful band in the history of alternative rock, with the records for most number-one singles, most cumulative weeks at number one and most top-ten songs on the Billboard Alternative Songs chart. They have won six Grammy Awards, and in 2012 were inducted into the Rock and Roll Hall of Fame.
Now the band is selling their song catalog to Hipgnosis Songs for upwards of $140 million, sources confirm to Variety, making them the latest heritage artist to benefit from the intellectual property gold rush that has seen Bob Dylan sell his songwriting catalog to Universal Music Publishing for more than $300 million and Stevie Nicks sell hers to Primary Wave for $100 million.
The Chili Peppers’ catalogue, which was largely penned by the band’s key members, lead singer Kiedis, bassist Flea, drummer Chad Smith and guitarist John Frusciante, generates between $5 million to $6 million a year for publishers, according to Billboard, and was sold for about 25 times as much.
The company headed by music magnate Merck Mercuriadis debuted on the London Stock Exchange in July 2018, and has dropped well over $1 billion on catalog acquisitions including from Neil Young, Blondie, Shakire and RZA.
The latest sale is part of a song rights purchasing boom as financial markets increasingly are drawn to the lucrative portfolios as an asset class.