Sony has signed an agreement with Michael Jackson’s heirs on buyout of a 50-percent stake in Sony/ATV Music Publishing for $750 million.
Thus, Sony is to become the only owner of the publishing house that has rights to thousands of songs, including The Beatles’ works.
The music catalog was bought by Michael Jackson in 1985. Ten years later, he reached an agreement with Sony on merging the catalog with the corporation’s publishing business and, as a result, Sony/ATV Music Publishing was established.
The deal turned out to be extremely profitable for Jackson. In 1985, he paid $47.5 million for the catalog and handed it to the new company for $115 million and a 50-percent stake in it.
In addition, under the terms of the deal, Sony had no rights to run the publishing business outside the joint venture, Forbes stresses. As a result, Michael Jackson and his heirs received payments for both old and new records, which were bought by the company later. Besides it, Sony keeps copyrights of Eminem and Taylor Swift’s works.
The parties are to sign their final agreement by 31 March. The exact terms of its fulfillment depend on different procedural issues.