The Red Hot Chili Peppers are selling their publishing rights to Merck Mercuriadis’ Hipgnosis Songs Fund for about $ 140 million, a source close to the situation says. Rolling stones. The transaction marks the latest catalog sale from a major legacy artist and one of the highest profile acquisitions to date for Mercuriadis.
The deal was first reported by Billboard Monday night and confirmed by Rolling stones.
Chili Peppers has one of the best-selling music catalogs with hits, including “Californication,” “Other Side,” “Under the Bridge” and “Scar Tissue.” Much of the catalog was written by Flea, Anthony Kiedis, John Frusciante and Chad Smith. Mercuriadis bought collectively from the band, the source says.
A representative of Hipgnosis declined to comment, while Chili Peppers̵
Since 2018, Mercuriadis and Hipgnosis have been shopping and have collected release rights for hit songs from some of the music industry’s most prolific songwriters, producers and artists, including Richie Sambora, Neil Young, Lindsey Buckingham and Jimmy Iovine. Sellers take an instant payout instead of rolling the dice on their future earnings from their songs, while buyers take the risk in hopes of boosting earnings by getting tracks in TV, movie video games and advertising opportunities.
Through Hipgnosis’ offering, in which the company offers highly lucrative acquisitions to rights holders, Mercuriadis helped launch the current song-recording boom that led Bob Dylan to sell his catalog to Universal Music Publishing Group for a reported $ 400 million, while Stevie Nicks sold her publishing rights for over $ 100 million.
There is still a list of some of the most lucrative catalogs in the last 50 years on the market and it is likely to be a bidding war for these rights as companies want to make money. Companies like BMG and KKR have told Rolling stones they are willing to put $ 500 million in the right catalog.