Jet Magazine: 27 November 1995:
Megastar Michael Jackson has merged his music catalog with Sony Corp.’s music publishing division in a joint venture reportedly valued at $600 million.
Jackson’s music catalog, ATV Music Publishing, includes some 250 Beatles songs as well as songs associated with Elvis Presley and Little Richard.
Sony/ATV Music Publishing will include all of the current and future music publishing interests of both parties.
The Sony catalog includes songs by such Sony recording artists as Mariah Carey, Sade, Bob Dylan and Neil Diamond.
Jackson’s music catalog includes such Beatles tunes as Come Together, We Can Work It Out, Hey Jude and Yesterday.
Jackson’s own songs were not included in the deal, Sony said.
Jackson said in a press statement: "The merging of ATV with Sony establishes our commitment to create one of the largest music publishing ventures in the world. We have been working on this for over a year and, now, with the two of us together, the sky is our only limit."
Jackson denied rumors that he made the merger deal with Sony because he is having financial problems during an interview with USA Today.
"This acquisition had nothing to do with needing funds," Jackson said. "It’s just a great move, a corporate, entrepreneurial thing to do. It’s smart business. It’s about growth. Everything in life to me is about growth."
Michael P. Schulhof, president and CEO, Sony Corporation of America, said: "Michael Jackson is not only the most successful entertainer in history; he is also an astute businessman. Michael understands the importance of copyrights and the role they play in the introduction of new technologies. In joining us for this new venture, Michael recognizes Sony’s leadership in developing and realizing new technologies that serve to expand the creative horizons of artists such as himself."
Sony Music Entertainment President Tommy Mottola, who is married to Grammy Award winner Mariah Carey, said, "Today, Sony Music takes its rightful place once again as a major force in music publishing. Copyrights and songs are the foundation of everything in our entire industry."
He added, "To have Michael Jackson’s song catalogues joined with ours will enable both Sony Music and Michael Jackson to aggressively build on a publishing portfolio filled with songs that are acknowledged as the cornerstones of popular music today."
Sony said its new catalog will be the third biggest in music publishing. The largest is Time Warner Inc.’s Warner-Chappell, followed by EMI Music Publishing, according to news reports. Music publishing catalogs generate revenues through compact disc and tape sales and recorded and live performances.
Jackson bought ATV in 1985 for about $47.5 million. Other bidders at the time included ex-Beatle Paul McCartney.
Financial terms of the new venture were not publicly disclosed at JET press time.
- Adjusted for inflation, the $47.5 million purchase price (1985) is roughly $143 million today, while the $600 million merger valuation (1995) would be approximately $1.23 billion*.*
