Sony Corporation has agreed in principle to buy out the late great music legend Michael Jackson’s Sony/ATV publishing. Michael Jackson’s estate has agreed to sell 50 percent interest of his publishing giving Sony complete control of his catalog and other artist catalog as well.
Sony made an announcement that they will pay MJ’s estate $750 million for 50 percent interest by March 31st the agreement will be definitive and the deal will be closed by late 2016 or early 2017.
When the deal is closed, the Jackson estate will retain the 10 percent interest it holds in EMI Music Publishing, as well as Mijac Music, the publishing company that owns the songs written by Michael Jackson as well as songs written by other writers, plus Jackson’s master recordings. The buy out will have certain conditions as it pertains to “The King of Pop” music.
“This transaction further allows us to continue our efforts of maximizing the value of Michael’s Estate for the benefit of his children,” Jackson estate 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 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.”
Part of the money used from the buy out will go towards the estate’s $500 million dollar debt from over the past seven years.