February 12th 2024.
In a groundbreaking deal last year, Sony Music Group acquired 50% of Michael Jackson's publishing and recorded masters catalog for an astounding $1.2 billion. This purchase, considered the largest valuation ever of a musician's music assets, was a major milestone for both Sony and the late King of Pop's estate.
The agreement, which was finalized in late 2019, involved Sony paying $600 million to Jackson's estate. This amount was a bargain compared to the initial asking price of $1.2 to $1.5 billion. However, the deal did not include any royalties from the MJ Broadway play or other theatrical productions featuring Jackson's music.
Interestingly, the acquisition also included music from other artists, such as the iconic 250-song Sly & the Family Stone publishing catalog, as well as songs written and/or performed by the likes of Jerry Lee Lewis, Jackie Wilson, Curtis Mayfield, Ray Charles, Percy Sledge, and Dion. This was part of Jackson's Mijac publishing catalog, which Sony now has control over.
This deal had been in the works for quite some time, as Variety reported early last year. It also allowed Primary Wave Music to retain a 10% stake in Jackson's publishing assets. Negotiations were intense, with Sony ultimately securing a lower buyout number after the estate initially asked for $800 to $900 million.
It's worth noting that Sony has been the home for Jackson's recorded music catalog throughout his solo career, which included chart-topping hits like "Beat It" and "Thriller," as well as his time with the Jackson 5. Since the singer's untimely death in 2009 at the age of 50, his estate has been carefully managed by his longtime lawyer, John Branca, and executive John McClain.
This is not the first time Sony has made a major investment in Jackson's music. In 1995, the company launched a joint venture with the singer called Sony/ATV Music Publishing. However, it wasn't until seven years after his death that Sony Corp. reached a $750 million agreement with Jackson's estate to acquire their 50% stake in the venture. In 2018, Sony also acquired the estate's 25.1% stake in EMI Music Publishing for $287.5 million.
It's clear that Jackson's estate is still a lucrative one, with reports stating that it earns about $75 million annually. And with recent news of actress Nia Long being cast as his mother in an upcoming biopic, the King of Pop's legacy continues to live on. This acquisition by Sony Music Group only solidifies his place in music history and serves as a testament to his enduring impact on the industry.
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