Michael Jackson’s Stake in Sony/ATV to be Sold for $750 Million
After a 21-year partnership with Michael Jackson, Sony Corporation America (SCA) is looking to purchase the late entertainer's stake in its Sony/ATV Music Publishing company for $750 million. All this in hopes of helping Sony "quickly adapt to changes in the music publishing business," according to Michael Lynton, CEO of Sony Entertainment.
Michael Jackson first partnered with SCA in 1995 after purchasing ATV, a music publishing company that was home to the Beatles catalog, in 1985. In it's infancy, SCA knew that the joint venture "had the ability to reach great heights." So now, 21 years later, the multimillion-dollar conglomerate is seeking to buy out the other half of its investment. If the deal goes through, the King of Pop's estate will make a $702.5 millon profit over the initial $47.5 million invest Michael made when initially purchasing the company way back when.
Ironically, before Sony positioned itself to make an offer to MJ's estate, the estate, now managed by John Branca and John McClain, planned to buy SCA out of their half of the Sony/ATV deal. But in a world where money talks, it was hard for Branca and McClain to ignore Sony's $750 million offer, which includes a lump sum payment of $733 million in addition to payments made for contractual and accounting adjustments.
A final agreement is said to be made by the end of this month.