Sony reaches deal to buy Micheal Jackson's stake

Sony Corp. reached an agreement with the estate of Michael Jackson to acquire the late pop star’s stake in their joint music business for $750 million. The terms call for Sony to make a lump sum payment of $733 million for Jackson’s 50% stake in Sony/ATV Music Publishing, as well as future distributions, according to a statement Monday. The deal consolidates Sony’s control over a partnership that was forged in 1995. Talks on a deal began in September, when Tokyo-based Sony exercised its right under their joint venture to buy out Jackson’s estate, according to the statement. The company said the purchase underscored the importance of its entertainment operations. “The entertainment businesses have long been a core part of Sony and are a key driver of our future growth,” said Kazuo Hirai, Sony’s president and chief executive officer. “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.” The estate of Jackson, who died in June 2009 at age 50, will continue to have interests in the music industry. Those include all of the pop star’s master recordings and the publishing company that owns all of the songs he wrote. The estate will also retain its interest in EMI Music Publishing. “This transaction further allows us to continue our efforts of maximising the value of Michael’s Estate for the benefit of his children,” said John Branca and John McClain, co-executors of the estate. The catalog was purchased in 1985 for $41.5 million, they said. Documents leaked by hackers who broke into Sony Entertainment’s computers in 2014 revealed that executives at the company were weighing the future of the joint venture. (By Anousha SakouiBloomberg)