Sony is to buy Michael Jackson’s 50% share in Sony/ATV Music Publishing from the dead singer’s estate for $750m (£530m).
The company is the largest music publishing company in the world and owns the rights to millions of songs including some of the Beatles’ work, as well as music by Taylor Swift, Bryan Adams, Beyonce, Lady Gaga and Manic Street Preachers.
Sony will now control the whole company, which was formed in partnership with Jackson in 1995.
Jackson died in 2009 at the age of 50. The singer’s estate will still own Jackson’s master recordings and the publishing company that owns all the songs he wrote. It will also keep its stake in EMI Music Publishing Ltd which owns the publishing rights to the musical works of Robbie Williams, Ozzy Osbourne and Lenny Kravitz.
“This transaction further allows us to continue our efforts of maximizing the value of Michael’s Estate for the benefit of his children,” the co-executors of Jackson’s estate, attorney John Branca and music executive John McClain, wrote in a statement. “It also further validates Michael’s foresight and genius in investing in music publishing.”
Jackson bought ATV Music Publishing in 1985 for $41.5m from South African-born entrepreneur Robert Holmes à Court, before later merging the company with Sony.
The executors of Jackson’s estate, which benefits his mother Katherine and three children, known as Prince, Paris and Blanket, said that the original deal “is considered one of the smartest investments in music history”.
The proceedings from the catalogue offered vital revenue for the singer later in life when he released little new material.
Jackson has previously said that he first learned of the music publishing business from former Beatle Paul McCartney, who bought the copyright to songs by Buddy Holly and other classic artists, when he set up Northern Songs Ltd in 1963, along with music publisher Dick James, Brian Epstein and John Lennon.
While The Beatles lost control of their catalogue, it was Jackson who eventually acquired it in August 1985.
In 1991, Jackson sold 50% of his stake in ATV to Sony for $100m. Sony chief executive Kazuo Kirai said: “This agreement further demonstrates Sony’s commitment to the entertainment businesses and our firm belief that these businesses will continue to contribute to our success for years to come.”
In recent years, the company has been leaning more towards music, in its $3m investment in music-recognition app Shazam, following years of losses from the consumer electronics that built its global brand.” The entertainment businesses have long been a core part of Sony and are a key driver of our future growth,” Kirai added.