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

According to Variety, the Michael Jackson estate is nearing an agreement to sell half of its holdings in the megastar’s music library for up to $900 million.

According to the trade publication, the singer’s publishing and recorded music royalties, the Broadway production “MJ: The Musical,” and the unproduced biopic “Michael” could all be included in the sale to Sony and a potential financial partner.

The sale, if it proceeds, would be the largest to date in the rapidly growing music catalog industry, which has already witnessed some staggering transactions.

They have taken into account the $400 million paid by Universal Music for Bob Dylan’s recorded music as well as the $600 million sale of Bruce Springsteen’s publishing and recorded music back catalog to Sony.

Justin Bieber, the reigning pop star, sold his shares in Hipgnosis Songs Capital, which is backed by Blackstone, for $200 million last month.

According to Variety, which cited three unnamed sources for the allegation, it was unclear who Sony’s partner in the mega-deal was or even if one existed.

Investment firms like Eldridge Industries, owned by Todd Boehly—chairman of Premier League football club Chelsea and owner of a share in the Los Angeles Dodgers baseball team—have been involved in previous transactions in the area.

Michael Jackson had one of the most commercially successful back catalogues of any musician. He passed away in 2009 after decades of touring and recording.

One of the best-selling albums of all time is his “Thriller” from 1982. In the era of streaming, investors are becoming more interested in music libraries as an asset class that they believe will hold value over time.

When a song is used in commercials or films or for radio play or streaming, the owner of the publication rights receives a portion of the revenue. Reproduction and distribution are governed by recording rights.

This article has been posted by a News Hour Correspondent. For queries, please contact through [email protected]
No Comments