Sony-EMI Deal Reunites Jackson 5 Songs With Michael Jackson
Flush with cash from the stratospheric success of his solo career, Jackson thought seriously about buying the publishing rights to some of the songs he’d recorded years earlier as a member of the Jackson 5–including “I Want You Back,” one of hundreds in Motown’s Jobete catalog, then owned by the legendary Berry Gordy and his sister. Despite serious interest from Jackson, who was “like a son” to Gordy, the music mogul sold a 50% stake in the catalog to EMI for $132 million in 1997.
But dreams often take a lifetime to achieve, and the King of Pop seems to have realized this one posthumously. On Friday, a Sony-led team of investors purchased EMI’s entire publishing catalog for $2.2 billion. The group includes billionaire David Geffen, the Blackstone Group’s GSO Capital Partners LP, and none other than the estate of Michael Jackson (its stake is nested within Sony’s 38% share of EMI, according to sources close to the negotiations).
The move makes sense for reasons beyond just the sentimental. Michael Jackson’s estate still co-owns the separate Sony/ATV publishing catalog in a joint venture with Sony; that company, headed by former EMI chief Marty Bandier, will administer the newly-acquired EMI assets on behalf of the investors.
Still, the reunion is little more than a drop in the financial bucket. Because Sony/ATV (The Michael Jackson Estate) will soon begin receiving administrative fees from the EMI catalog’s new owners, its own value is likely north of $2 billion as well.
As for Jackson, his estate has raked in half a billion dollars since his death two and a half years ago. And though the King of Pop’s posthumous concert flick was called This Is It, he’s just getting started from a posthumous earnings perspective. Jackson’s Immortal World Tour, a partnership with Cirque du Soleil, is grossing $2.4 million a night; plans call for over 100 shows a year for each of the next three years.
INVESTOR GROUP INCLUDING SONY CORPORATION OF AMERICA ENTERS INTO DEFINITIVE AGREEMENT TO ACQUIRE EMI MUSIC PUBLISHING FROM CITI