However, the Estate will retain its ownership interest in EMI Music Publishing – a stake believed to comprise around 10% of the business.
MusicBusineeWorlwide reports the parties expect to execute a definitive agreement by March 31, 2016.
The deal includes a lump sum payment by Sony Corporation of America of approximately $733 million as well as distributions previously committed to by Sony/ATV to be paid to the Estate.
The sale is the culmination of a process that began in September 2015 when Sony exercised a right to buy that has existed since the joint venture was formed by Michael Jackson and Sony in 1995.
The closing of the transaction is subject to regulatory approvals.
“The entertainment businesses have long been a core part of Sony and are a key driver of our future growth,” said Kazuo Hirai, President and CEO of Sony Corporation.
“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.”
“This transaction further allows us to continue our efforts of maximizing the value of Michael’s Estate for the benefit of his children,” said John Branca and John McClain, Co-Executors of the Estate.
The Jackson Estate will also retain its interest in other music assets, including all of Michael Jackson’s master recordings as well as Mijac Music, the publishing company that owns all of the songs written by Michael Jackson.
Sony/ATV manages and/or owns songs performed by artists including The Beatles, Michael Jackson, Taylor Swift, Ed Sheeran, James Brown, Elvis Presley, Lauryn Hill, Oasis, Eminem and many more.
A portion of the proceeds will be used to finish the pay-down of $500 million in debt that the estate held seven years ago, leaving it completely debt-free and with cash on hand, according to a source. After taxes, fees and expenses, the balance will be transferred to a trust for the benefit of Michael's beneficiaries: his three children.
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