Red Hot Chili Peppers Selling Song Catalog
The band members — Anthony Kiedis, Flea, John Frusciante and Chad Smith — collectively write many of their songs, so it appears that a majority of them would have needed to agree to sell their shares of the rights to make this deal happen. According to BMI, the Red Hot Chili Peppers song catalog is administered by Moebetoblame Music, under the guidance of lawyer Eric Greenspan, managing partner of the law firm Myman, Greenspan, Fox, Rosenberg Mobasser, Younger & Light LLP. Sources say Greenspan shopped the deal for the band.
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 its 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. At deadline, Greenspan and Hipgnosis couldn’t be reached for comment.
In order to help finance that deal, Hipgnosis sold 9 million new ordinary shares at £1.195 ($1.66) per share on April 29, bringing in £10.76 million ($14 million). Those shares are expected to be listed on the London Stock Exchange on May 5.
In January, Hipgnosis sold nearly 62 million shares and raised about £75 million ($104 million). In another move, on April 1, Hipgnosis converted from being a Guernsey-based company to becoming an investment trust.