Sony buys out Michael Jackson's stake in joint music venture
Sony Corporation has reached an agreement with the estate of Michael Jackson to acquire the interest of the late King of Pop in their joint music business for $750 million.
Los Angeles: Sony Corporation has reached an agreement with the estate of Michael Jackson to acquire the interest of the late King of Pop in their joint music business for $750 million.
The terms of the deal call for Sony to pay $733 million for Jackson`s 50 percent stake in Sony/ATV Music Publishing, as well as previously announced distributions, with payments totalling $750 million, reports variety.com.
Sony Corporation chief Kaz Hirai used the announcement to reiterate Sony`s commitment to holding on to its entertainment assets.
"The entertainment businesses have long been a core part of Sony and are a key driver of our future growth," Hirai said in a statement.
"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."
Sony/ATV Music Publishing, established in 1995 as a joint venture between Sony and Jackson, touts itself as the world`s leading music publisher.
The companies said in a joint release on Monday that the sale is the culmination of a process that began in September when Sony exercised its right to purchase the other partner`s interest - a right that has existed since the joint venture was formed by Jackson and Sony in 1995.
The parties expect to reach a definitive agreement by March 31, and the closing is subject to certain conditions, including regulatory approvals.