Sony to buy Michael Jackson's stake in Sony ATV JV for $750 mn
15 March 2016
Sony today struck a deal to buy the remaining stake it does not already own in the Michael Jackson joint music publishing venture from Michael Jackson's estate for $750 million.
Jackson held a 50-per cent stake in Sony ATV Music Publishing joint venture that started in 1995.
The deal does not include the late pop star's master recordings and the Jackson estate will maintain its holdings in Mijac Music, which owns all the songs written by Jackson, as well as EMI Music Publishing.
Sony Entertainment CEO, Michael Lynton said that ''this acquisition will enable Sony to more quickly adapt to changes in the music publishing business.''
Michael Jackson's estate said in a statement that, ''This transaction further allows us to continue our efforts of maximising the value of Michael's Estate for the benefit of his children. It also further validates Michael's foresight and genius in investing in music publishing.''
Part of the proceeds will be used to pay the $500 million debt that the estate has since the death of the pop star. After taxes, fees and expenses, the balance will be transferred to a trust for the benefit of Michael's three children.
ATV was founded in 1955 and acquired by Michael Jackson in 1985 for $41.5 million. In 1995, Michael Jackson merged his share with Sony's music-publishing catalogue to form Sony ATV, which owns or administers over 2.8 million copyrights, including music by Taylor Swift, Adele, Justin Bieber, Beatles, Taylor Swift, the Rolling Stones, Marvin Gaye and many others.
When Michael Jackson died in 2009, his estate was bankrupt, but six years since then, his estate has made $2 billion from his movie This Is It, Michael Jackson, The Immortal World Tour by Cirque du Soleil and album sales.