Sony is set to buy out the Michael Jackson estate’s 50-percent share of Sony/ATV Music Publishing, according to reports.
The share will set Sony back $750, meaning they control 100% of the company. An agreement on the deal is expected by the end of the month, closing in late 2016 or early 2017.
Jackson purchased ATV Music back in 1985 for over $40 million, selling a 50% share to Sony ten years later for over $100 million. When he died, in 2009, the Jackson estate was $500 million in debt, meaning this new deal will take it out of the red.
The estate’s co-executors John Branca and John McClain (yes, John McClain!) explain: “This transaction further allows us to continue our efforts of maximizing 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. His ATV catalogue, purchased in 1985 for a net acquisition cost of $41.5 million, was the cornerstone of the joint venture and, as evidenced by the value of this transaction, is considered one of the smartest investments in music history.”
Meanwhile, Sony Entertainment CEO Michael Lynton says: “This acquisition will enable Sony to more quickly adapt to changes in the music publishing business, while at the same time continuing to be an unparalleled leader in the industry and a treasured home for artists and writers. All of us at Sony look forward to continuing to work with the Estate to further Michael Jackson’s legacy in many different ways.”
Jackson’s estate retains its 10-percent stake in EMI Music Publishing, as well as Mijac Music, which owns Jackson’s master recordings and songs he penned.
The share will set Sony back $750, meaning they control 100% of the company. An agreement on the deal is expected by the end of the month, closing in late 2016 or early 2017.
Jackson purchased ATV Music back in 1985 for over $40 million, selling a 50% share to Sony ten years later for over $100 million. When he died, in 2009, the Jackson estate was $500 million in debt, meaning this new deal will take it out of the red.
The estate’s co-executors John Branca and John McClain (yes, John McClain!) explain: “This transaction further allows us to continue our efforts of maximizing 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. His ATV catalogue, purchased in 1985 for a net acquisition cost of $41.5 million, was the cornerstone of the joint venture and, as evidenced by the value of this transaction, is considered one of the smartest investments in music history.”
Meanwhile, Sony Entertainment CEO Michael Lynton says: “This acquisition will enable Sony to more quickly adapt to changes in the music publishing business, while at the same time continuing to be an unparalleled leader in the industry and a treasured home for artists and writers. All of us at Sony look forward to continuing to work with the Estate to further Michael Jackson’s legacy in many different ways.”
Jackson’s estate retains its 10-percent stake in EMI Music Publishing, as well as Mijac Music, which owns Jackson’s master recordings and songs he penned.
