Executives from Sony Corporation have struck a deal with Michael Jackson's estate worth $750 million (£525 million).
The late pop icon owned a 50 per cent stake in Sony/ATV Music Publishing before he passed away at the age of 50 in 2009 and the new agreement bosses at Sony struck with Jackson's executors means the entertainment conglomerate will become the sole owner 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 (14Mar16). “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 higher-ups agreed to the sum of $733 million (£513 million) for the buy-out, but payment instalments 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 31 March (16).
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 (£1.5 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 maximising 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 (£29 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.”