Winding Road for Michael Jackson
MIL/Agencies, Apr 14, 2006.
The long and winding road of Michael Jackson, from King of Pop to strange recluse with cash troubles, has led to a deal that will help avert his bankruptcy in exchange for a slice of music history - his share in the Beatles' catalogue, as per the Guardian.
Under a deal due to be completed last night, Jackson would offer Sony Corp the option to buy half of his 50% share in the Sony/ATV Music catalogue, allowing him a way out of insolvency, and ensuring that the catalogue of hits from Bob Dylan and other stars, as well as the Beatles, remains intact.
The deal would allow Sony to increase its own stake in the ATV catalogue from half to 75% at any point over the next three years. In return, Jackson would be able to fend off foreclosure from the New York investment company Fortress Investment Group, on debts understood to be worth $270m (£155m). The foreclosure move would have pushed Jackson - once one of the wealthiest musicians - into declaring bankruptcy.
Jackson has owned his stake of the catalogue since the 1980s, a decade that brought him multiple Grammys with his Thriller album, and vast wealth through a sponsorship deal with Pepsi. He paid $47.5m for his 50% stake in the collection; today, the catalogue is valued at $1bn and generates revenue for Sony every time one of its songs is played on the radio.
The deal, coming nearly a year after Jackson was acquitted of child molestation, could open a new page in the life of a man who is remembered more for his bizarre antics than for his music. Since relocating to Bahrain Jackson has faced rising expenses and little prospect of earnings with no new album or tour due. Sources say Jackson was determined at all costs to avoid being forced into bankruptcy.
Full story: http://arts.guardian.co.uk/news/story/0,,1753832,00.html#article_continue
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