MUMBAI: Sony Corporation and Michael Jackson co-owned Sony/ATV Music Publishing will soon change ownership. Sony plans to sell-out its 50 per cent stake in the company, which holds the rights of some iconic artists like The Beatles, Elvis Presley, Michael Jackson, Taylor Swift, Bob Dylan, Bruce Springsteen, Hank Williams and Marvin Gaye, among others.
According to Wall Street Journal, Sony triggered a buy-sell clause in its contract with its co-owner- the Michael Jackson estate. The clause allows one party to buy out the other. Sony has informed the lenders about the exit clause.
Sony/ATV music publishing has relied on Sony for cash. Nonetheless, their Q2 results for 2015 showed green marks, as compared to 2014, as profits went up by 9.6 per cent this year. As per reports, Sony/ATV is worth around $2 billion although it does not necessarily mean that Sony will offload its 50 per cent stake for $1 billion. Sony has not put a tag on its share as negotiations are still on for the same.
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In 1985, the King of Pop bought ATV Publishing for $47.5 million and in 1995, the business was merged with Sony.
