Michael Jackson‘s estate is gearing up to say farewell to its shares in the music publishing company Sony ATV.
News they should be crying about?
Not really, but if they are they’ll be able to dry their eyes with the $750 million they’re set to receive for it.
In 1995 Jackson entered a joint venture with ATV which saw him sweep up 50% of the company.
Now, after the organisation loaned him a reported $280 million to save him from bankruptcy in 2006, it has confirmed that is to pay his estate $750 million in exchange for his shares.
Their official announcement read:
This transaction further allows us to continue our efforts of maximizing the value of Michael’s Estate for the benefit of his children. It also further validates Michael’s foresight and genius in investing in music publishing. His ATV catalog, purchased in 1985 for a net acquisition cost of $41.5 million, was the cornerstone of the joint venture and, as evidenced by the value of this transaction, is considered one of the smartest investments in music history.
This acquisition will enable Sony to more quickly adapt to changes in the music publishing business, while at the same time continuing to be an unparalleled leader in the industry and a treasured home for artists and writers. All of us at Sony look forward to continuing to work with the Estate to further Michael Jackson’s legacy in many different ways.
A portion of the proceeds will be used to finish the pay-down of $500 million in debt that the estate held seven years ago, leaving it completely debt-free and with cash on hand, according to a source. After taxes, fees and expenses, the balance will be transferred to a trust for the benefit of Michael’s beneficiaries: his three children.