Michael Jackson’s Estate Reaches $750 Million Deal With Sony
Michael Jackson’s estate have struck a deal worth $750 million with Sony Corporation executives. The Thriller singer owned a 50 percent stake in Sony/ATV Music Publishing before he passed away in 2009 at the age of 50, and Sony executives have agreed to pay $750 million to buy out Jackson’s share, so they will become the sole owners of the music publishing company.
“The entertainment businesses have long been a core part of Sony and are a key driver of our future growth,” Sony President and CEO Kaz Hirai wrote in a statement released to Variety on Monday. “This agreement further demonstrates Sony’s commitment to the entertainment businesses and our firm belief that these businesses will continue to contribute to our success for years to come.” Sony executives agreed to the sum of $733 million for the buy-out, but payment installments means Jackson’s estate will receive a total of $750 million. Although the deal is pretty much cemented, a firm agreement will be reached on the matter no later than March 31. Sony/ATV Music Publishing, a joint venture between Jackson and the entertainment corporation, was established in 1995 and it is considered to be the globe’s leading publisher of music, with the company either owning or administering over 3 million copyrights. EMI Music Publishing was acquired by Sony/ATV Music Publishing in 2012 for the tune of $2.2 billion. Sony/ATV Music owns the copyrights for some of the most established acts in history, including Lady Gaga, the Beatles, Carole King, Stevie Wonder, the Supremes, the Rolling Stones and more. Jackson fathered three children while he was alive, and representatives from his estate claim this significant deal will be very beneficial for his progeny. “This transaction further allows us to continue our efforts of maximizing the value of Michael’s Estate for the benefit of his children,” co-executors John Branca and John McClain said in a statement. “It also further validates Michael’s foresight and genius in investing in music publishing. His ATV catalog, 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.”