Sony Corporation (“Sony”) and the Estate of Michael Jackson (“the Estate”), today announced that following the satisfaction of applicable closing conditions, including the receipt of regulatory approvals, Sony Corporation of America (“SCA”), Sony’s wholly owned subsidiary, has closed on the purchase of the remaining 50% interest in Sony/ATV Music Publishing LLC (“Sony/ATV”) from the Estate. The agreement for this purchase was first announced on March 14, 2016.
As previously announced, the purchase calls for total payments of 750 million U.S. dollars, which includes a lump sum payment by SCA of approximately 733 million U.S. dollars, as well as distributions previously committed to by Sony/ATV to be paid to the Estate. The payment also reflects certain contractual and accounting adjustments related to the Sony/ATV joint venture and other commercial opportunities involving Sony and the Estate.
The purchase is not expected to have a material impact on Sony’s forecast for its consolidated financial results for the fiscal year ending March 31, 2017.
The Estate noted that the transaction will not affect its continuing substantial interests 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 as well as songs by some of his favorite songwriters and artists that were acquired by Michael during his life. In addition, the Estate will also retain its ownership interest in EMI Music Publishing.