Sony to buy the remaining half of Sony/ATV shares from Michael Jackson’s estate for $750M
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Sony Entertainment CEO Michael Lynton said in a press release that “this acquisition will enable Sony to more quickly adapt to changes in the music publishing business.”
The deal, which is expected to close by the end of this month, will not impact its other music assets held by Michael Jackson’s estate, including its 10 percent stake in EMI Publishing,
which is owned by an investor consortium lead by Sony. It also does not include Jackson’s master recordings or Mijac music, the publishing company that owns all Michael Jackson songs and is
managed by Sony/ATV.
Sony exercised a right in its original contract with ATV that allows one partner to purchase the other’s interest and that the transaction will have no material impact on its fiscal year
results. According to Rolling Stone, the Sony and Michael Jackson’s estate begun negotiating the deal last year, though it was unclear at first if Sony would purchase the remaining shares or
sell its stake back to the estate.
ATV was founded in 1955 and purchased in 1985 by Michael Jackson, who paid $41.5 million for the company.
In a statement, his estate said, “This transaction further allows us to continue our efforts of maximizing the value of Michael’s Estate for the benefit of his children. It also further
validates Michael’s foresight and genius in investing in music publishing.”
Catherine Shu covered startups in Asia and breaking news for TechCrunch. Her reporting has also appeared in the New York Times, the Taipei Times, Barron’s, the Wall Street Journal and the
Village Voice. She studied at Sarah Lawrence College and the Columbia Graduate School of Journalism.