Michael Jackson estate eyeing near-$1bn sale of music rights: report


Donate
LOS ANGELES — The estate of Michael Jackson is closing in on a deal to sell half its interests in the megastar’s music catalogue, in a deal worth up to $900 million, Variety reported.
The sale, to Sony and a possible financial partner, could include a slice of the singer’s publishing and recorded-music revenues, as well as Broadway show “MJ: The Musical” and as-yet-unmade biopic “Michael,” the trade title said.
If it goes ahead, the deal would be the biggest yet in the burgeoning music catalogue market, which has already seen some eye-popping transactions.
They have included the sale of Bruce Springsteen’s publishing and recorded music back catalogue for $600 million — also to Sony — and $400 million that Universal Music paid to buy Bob Dylan’s recorded music.
Last month, pop juggernaut Justin Bieber sold his music publishing and recording catalogue shares to the Blackstone-backed Hipgnosis Songs Capital for $200 million.
Variety, which cited three unnamed sources for its report, said the identity of Sony’s partner in the blockbuster deal — or even the existence of one — was not clear.
Previous deals in the sector have involved investment outfits like Eldridge Industries, owned by Todd Boehly, who is chairman of Premier League football club Chelsea, and who also has a stake in the Los Angeles Dodgers baseball team.
Michael Jackson, who died in 2009 after decades of performing and recording, has one of the most financially lucrative back catalogues of any artist.
His 1982 album “Thriller” is one of the biggest sellers of all time.
Investors are increasingly attracted to music catalogues as an asset class that they believe has long-term value in the age of streaming.
Owners of a song’s publishing rights receive a cut in various scenarios, including radio play and streaming, album sales, and use in advertising and movies. Recording rights govern reproduction and distribution.
POST YOUR COMMENTS
MAORANDCITIES.COM uses both Facebook and Disqus comment systems to make it easier for you to contribute. We encourage all readers to share their views on our articles and blog posts. All comments should be relevant to the topic. By posting, you agree to our Privacy Policy. We are committed to maintaining a lively but civil forum for discussion, so we ask you to avoid personal attacks, name-calling, foul language or other inappropriate behavior. Please keep your comments relevant and respectful. By leaving the ‘Post to Facebook’ box selected – when using Facebook comment system – your comment will be published to your Facebook profile in addition to the space below. If you encounter a comment that is abusive, click the “X” in the upper right corner of the Facebook comment box to report spam or abuse. You can also email us.