Michael Jackson News: Sony to Buy ATV/Sony Shares of The Late King of Pop
Sony Corporation has confirmed that it will be paying $750 million to buy Michael Jackson's 50 percent share on the Sony/ATV music publishing company.
The growth of Sony/ATV catalog for the past couple of years is undeniable as the company now boasts of administering or owning copyrights to over three million songs. Apart from the hits of Lady Gaga, Alicia Keys, and Sting, the company also has control of the songs "Over The Rainbow" and "New York, New York."
Nonetheless, Jackson's share of the estate is still owned by his master recordings as well as Mijac Music, which has the rights to all the songs that Jackson penned and performed. According to Mijac Music co-executors John Branca and John McClain, the money that will come from the deal with Sony will surely benefit the children left behind by the King of Pop.
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As a music publisher owns the rights to a song's lyrics and composition, it gains from the paid royalties every time a song is used on TV, commercials, or any other purpose. More often than not, the publisher and the songwriter divvy up the collected amount although, in some cases, it is not always the case, depending on the written agreement between the two parties.
Jackson purchased ATV as he heeded the advice of his friend Paul McCartney, who told him that, in order to keep the cash coming in the music industry, Jackson needed to have his own music publishing company. When news about ATV being sold by its original owner reached the knowledge of Jackson's lawyer, Jackson did not let the chance pass as he placed a bid on the estate. After long and grueling negotiations, the deal was finally sealed, reportedly at the amount of $47.5 million.However, as Jackson was in the red and in dire need of money sometime in the '90s, he sold half of ATV to Sony, resulting in the formation of Sony/ATV.
Once the deal between Sony and Jackson's estate is done, Sony Corporation will have total control of Sony/ATV.
