Sony has reached a deal to buy the music catalog of the late pop star Michael Jackson for $1.2 billion, according to a report by The Seattle Times. The deal, which is expected to be announced soon, will give Sony full ownership of the rights to Jackson’s songs, as well as those of other artists, such as The Beatles, Bob Dylan, and Eminem.
The Background of the Deal: A Long and Complex History
The deal is the culmination of a long and complex history between Sony and Jackson, who died in 2009. In 1995, Jackson merged his ATV Music Publishing, which he bought in 1985 for $47.5 million, with Sony’s music publishing division, forming Sony/ATV Music Publishing. The joint venture gave Jackson and Sony equal shares of the catalog, which included more than a million songs.
However, Jackson’s financial troubles and legal battles forced him to borrow money from Sony, using his stake in the catalog as collateral. In 2006, Sony loaned Jackson $300 million to pay off his debts, and in 2016, Sony agreed to buy Jackson’s half of the catalog for $750 million, giving Sony a 90% stake in the catalog. Jackson’s estate retained a 10% stake, as well as the rights to Jackson’s own songs, which are administered by another company, Mijac Music.
The Motivation of the Deal: A Strategic and Profitable Move
The deal is a strategic and profitable move for Sony, which is looking to expand its music business and capitalize on the growing demand for streaming and licensing. The deal will give Sony full control and flexibility over the catalog, which is one of the most valuable and diverse in the music industry. The catalog generates hundreds of millions of dollars in revenue every year, from various sources, such as radio, TV, movies, video games, and online platforms.
The deal will also allow Sony to benefit from the enduring popularity and legacy of Jackson, who is widely regarded as one of the greatest and most influential artists of all time. Jackson’s songs and albums have sold more than a billion copies worldwide, and have won numerous awards and accolades. Jackson’s music also continues to attract new and loyal fans, especially after the release of documentaries, such as This Is It and Leaving Neverland, which sparked controversy and debate.
The Implication of the Deal: A Win-Win Situation
The deal is a win-win situation for both Sony and Jackson’s estate, which will receive a hefty sum of money and a share of future earnings from the catalog. The deal will also help the estate pay off its remaining debts and taxes, and support its charitable and humanitarian causes. The estate has donated millions of dollars to various organizations, such as the Elizabeth Taylor AIDS Foundation, the Make-A-Wish Foundation, and the United Negro College Fund.
The deal will also preserve and honor Jackson’s artistic vision and legacy, as Sony has pledged to respect and protect the integrity and quality of Jackson’s music. Sony has also promised to continue to promote and celebrate Jackson’s music, and to collaborate with the estate on future projects and initiatives. Sony and the estate have already worked together on several successful ventures, such as the Cirque du Soleil show Michael Jackson: One, and the album Xscape, which featured unreleased songs by Jackson.
