Sony buys Michael Jackson's stake in music catalogue for $750M

Back in 1995, Sony and Jackson formed Sony/ATV after Jackson paid $41.5 million to acquire the ATV's extensive music catalog. It includes not only the rights to Beatles songs, but publishing for more than two million songs - including those by Taylor Swift, Bob Dylan, Beyoncé, and dozens of other big names - and is estimated to be worth in the billions.
The purchase of Jackson's stake also strengthens Sony's U.S. entertainment business, which includes a film studio and music recording company. The singer's estate will still own Jackson's master recordings and the publishing company that owns all the songs he wrote. 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. Jackson set the deal in stone after he made headlines by outbidding Paul McCartney for the rights to the Beatles' music catalog. Eleven years later, the singer merged his stake in ATV with Sony Music to form Sony ATV; the conglomerate then added EMI Music Publishing to their staple in 2012. By paying the Jackson estate $750 million, Sony now completely controls music the publishing company, Billboard reports. 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. According to the announcement, Sony will pay the Jackson estate a lump sum of $US733 million, with the rest accounted for in payments previously committed to by Sony. After the sale, Sony Corp. will be the only owner of the catalogue. The company now owns the works completely as part of a move that its CEO Kazuo Hirai said emphasized "commitment to the entertainment businesses". At the time of Jackson's death, the catalog was his most valuable asset. His will called for his mother Katherine and his three children - Prince, Paris and Blanket - to be supported, although not his father Joe Jackson, whom he had accused of abuse. The deal will officially close at the end of this month.