Red Hot Chili Peppers has become the latest artist to sell off their catalog for big bucks.
Per Variety and Billboard, who first reported the news, the Chili Peppers are selling their catalog to Hipgnosis Songs for between $140 million and $150 million.
Billboard notes, “The Red Hot Chili Peppers song catalog generates $5 million to $6 million in net publishers’ share (usually known as gross profit — although in this case it’s likely to include all revenue from the catalog), sources say, and it traded at a about a 25 times multiple, which calculates to about $125 million to $150 million total.”
Hipgnosis has been a very popular company as of late when it comes to catalog acquisitions. Variety reports, “In just two weeks early this year it acquired half of Neil Young’s catalog, as well as those of Fleetwood Mac veteran Lindsey Buckingham, producer/executive Jimmy Iovine amd Shakira. In just under three years, Hipgnosis has acquired catalogs by such hitmakers as Timbaland, Pretenders frontwoman Chrissie Hynde, Wu-Tang Clan’s RZA, Blondie, Barry Manilow, Jeff Bhasker and many more.”
