Sony completes acquisition of MJ’s share in Sony/ATV

Sony Corp has completed its US$750 million buy-out of the Michael Jackson estate’s 50% share of Sony/ATV Music Publishing.

It now has a 100% ownership in the lucrative company, which Billboard valued at US$2.2 billion to $2.4 billion.

Sony ATV Music Publishing was set up in 1995 as a joint venture between Michael Jackson and Sony.

The acquisition was first announced in March. But it took awhile to be completed by August as the EU Commission had to scrutinise the transaction following protests from the indie community, most notably from Impala.

The two companies retain a stake in EMI Music Publishing (Jackson has a 10% stake, Sony has 29%), and Sony Music will continue to release Jackson music.

Jackson’s estate continues interests in other music assets. It holds the rights to Jackson’s master recordings as well as the publishing company Mijac Music which holds rights to Jackson’s songs as well as by some of his favourite songwriters including The Beatles, Marvin Gaye and Bob Dylan. It also features songs by younger stars such as Kanye West, Pharrell Williams and Lady Gaga.

“The completion of this deal is terrific news for Sony/ATV and everyone who works for the company,” Sony/ATV Chairman/CEO Martin Bandier said in a statement. “It marks the start of an exciting new chapter in our proud history and we cannot wait to get started as a 100% Sony-owned company.

“Sony Corporation has shown absolute faith and support in us and what we do by undertaking this deal and we are ready to repay that trust in the months and years ahead.”

The Jackson estate co-executors John Branca and John McClain pointed out, “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. His ATV catalogue, purchased in 1985 for a net acquisition cost of $41.5 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.”