Hollywood Everafter

by James Hirsen

Back in 1985 Michael Jackson bought a publishing catalog for $47.5 million, which included world famous songs from one of music’s most legendary groups, The Beatles.

In 1995, Sony purchased from the pop singer half the rights to the catalog at a cost of $90 million.

To accomplish the transfer, a joint venture was created called Sony/ATV.

Today each of the halves of the entity is worth more than $700 million, which means Michael’s creditors, who are reportedly owed around $500 million, will be humming Beatles songs as they attempt to settle with the King of Pop’s estate.

Michael piled up massive debt from the time his solo career peaked with the “Thriller” album to his recent passing.

Creditors could force a sale of Michael’s share in the catalog.

A quick “auction” of the asset could result in a distress sale at below market prices given the current state of the music business.

Possible litigation involving the Jackson family, Paul McCartney, Sony and others has the potential to stretch out the process for years.