According to Variety, the Michael Jackson estate is nearing an agreement to sell half of its holdings in the megastar’s music library for up to $900 million.
The sale, to Sony and a possible financial partner, could include a slice of the singer’s publishing and recorded-music revenues, as well as Broadway show “MJ: The Musical” and the as-yet-unmade biopic “Michael,” the trade title said.
If it goes ahead, the deal would be the biggest yet in the burgeoning music catalogue market, which has already seen some eye-popping transactions.
They have included the sale of Bruce Springsteen’s publishing and recorded music back catalogue for $600 million — also to Sony — and $400 million that Universal Music paid to buy Bob Dylan’s recorded music.
Last month, pop juggernaut Justin Bieber sold his music publishing and recording catalogue shares to the Blackstone-backed Hipgnosis Songs Capital for $200 million.
Michael Jackson, who died in 2009 after decades of performing and recording, has one of the most financially lucrative back catalogues of any artist. His 1982 album “Thriller” is one of the biggest sellers of all time.
Investors are increasingly attracted to music catalogues as an asset class that they believe has long-term value in the age of streaming.
When a song is used in commercials or films or for radio play or streaming, the owner of the publication rights receives a portion of the revenue. Reproduction and distribution are governed by recording rights.
