Sony Music Entertainment appears to be getting ready to sell its 50% stake in giant publisher Sony/ATV.
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Sony, which owns the unit with Michael Jackson’s estate, recently triggered a clause in its contract that allows one partner to buy out the other, the Wall Street Journal reported, citing people familiar with the matter.
Sony entertainment chief executive officer Michael Lynton told Bloomberg News in January that the company had no plans to sell the music publishing business.
Beyond the Beatles, Sony/ATV also houses a swath of other high-value copyrights, including those tied to the Rolling Stones, Marvin Gaye, Taylor Swift, and Calvin Harris.
Compared to record labels, which simply own an artist’s songs and distribute those songs, music publishing companies are in a particularly more favorable position.
Apparently, word is leaking from Jackson estate lenders, with the Sony/ATV holding carrying a $2 billion valuation. A Sony source says that they will “either become 100 percent owner or divest”, and that the upcoming meeting is “just the first step” in the process.
Sony/ATV music publishing has relied on Sony for cash.
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The Journal reports Sony and the Jackson estate are talking to each other about Sony potentially selling its share of the publishing business, and that no public auction is planned.
