Rock bank Red Hot Chili Peppers have become the latest music artists to tap their song catalogue for cash after reportedly clinching a US$140mln deal with music royalty investment firm Hipgnosis Song Fund Ltd (LON:SONG).
The deal, which was first reported on Monday night by Billboard, the catalogue will include some of the band’s biggest hits including Californication and Under the Bridge, although Hipgnosis has declined to comment on the deal, which has yet to be formally announced by either party.
Buying the Chili Peppers’ catalogue will be another major win for the firm, which back in January snapped up 50% of the rights to the back catalogue of Neil Young, the singer-songwriter who has railed against ‘selling out’ and commercialization his entire career.
Hipgnosis isn’t the only London-listed music royalty fund on the acquisition trail either, with digital music rights firm One Media IP Group PLC (LON:OMIP) announcing this morning that it has acquired the writer’s share to the royalties of more than 250 tracks of Kid Creole and the Coconuts.
Shares in Hipgnosis were down 0.5% at 121.8p in late-afternoon trading on Tuesday.