malaymail.com 05 May, 2021 01:00 am

Billboard: Red Hot Chili Peppers sell song catalogue for US$140m

Billboard: Red Hot Chili Peppers sell song catalogue for US$140m
LOS ANGELES, May 5 ― The Red Hot Chili Peppers are the latest high-profile act to sell their music publishing rights, in a deal reportedly worth US$140-150 million (RM577-618 million) struck with the British investment firm Hipgnosis. Industry tracker Billboard cited anonymous sources in first...

LOS ANGELES, May 5 ― The Red Hot Chili Peppers are the latest high-profile act to sell their music publishing rights, in a deal reportedly worth US$140-150 million (RM577-618 million) struck with the British investment firm Hipgnosis.The owners of a song's publishing rights receive a cut in a number of scenarios, including radio play and streaming, album sales, and use in advertising and movies.Bob Dylan sold his full publishing catalog for a reported sum of US$300 million to Universal Music Publishing Group, while Stevie Nicks of Fleetwood Mac sold a majority stake in her catalog reportedly for US$100 million.As most of the songs were written collectively by band members Flea, Anthony Kiedis, John Frusciante and Chad Smith, the purchase required joint approval.

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.The company headed by music magnate Merck Mercuriadis debuted on the London Stock Exchange in July 2018, and has dropped well over US$1 billion on catalog acquisitions including from Neil Young, Blondie, Shakire and RZA.

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