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Investor Group acquires Sony/ATV Music Publishing from Sony Corp

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Dangerous Incorporated

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Published Jul 20, 2009
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About Thomson Financial Mergers & Ac...


US - An investor group comprised of Colony Capital LLC, Kohlberg Kravis Roberts & Co, Plainfield Asset Management LLC, and Mr. Haim Saban, planned to acquire the ##% interest in Sony/ATV Music Publishing LLC (Sony/ ATV), a Los Angeles-based publisher ...

Acquirer: Investor Group
Acquirer Business Discription: Investor group
Acquirer SIC Code: 6799 - Investors, nec
Target Name: Sony/ATV Music Publishing
Target Business Description: Publish music
Target Ultimate Parent: Sony Corp
Target SIC Code: 2741 - Miscellaneous publishing
Please Note: Target Financials are not included in this report.
Transaction Statistics are not included in this report.

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http://www.alacrastore.com/storecon...TV_Music_Publishing_from_Sony_Corp-2092335020
 
well they did not acquire it , they just made inquiries in regards to see whether it was for sale or not. Please do not jump into conclusions without researching.

Jackson Assets Draw the Gaze Of Wall Street
By ANDREW ROSS SORKIN AND MICHAEL J. DE LA MERCED
Published: July 20, 2009

As the world sorts through the pieces of Michael Jackson's life one month after his death, so, too, does Wall Street.

A handful of major financial firms have made inquiries into buying the Jackson estate's 50 percent share of Sony/ATV Music Publishing, the company that controls most of the Beatles song catalog, according to people briefed on the matter. Among them are Colony Capital, Kohlberg Kravis Roberts, Plainfield Asset Management and the media mogul Haim Saban, these people said.
....


John G. Branca, the entertainment lawyer who structured Mr. Jackson's initial purchase of the Beatles catalog and is now one of two executors of his estate, declined to comment by e-mail on Sunday, saying only that the Jackson stake in Sony/ATV ''is not for sale.''

see full story at

http://query.nytimes.com/gst/fullpa...3A15754C0A96F9C8B63&sec=&spon=&pagewanted=all
 
Dangerous Incorporated said:
:smilerolleyes:Thats the name of the Report Title
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title also says pending - meaning it didn't happen - why would you omit that? or why not provide a better title or an introduction so that we can understand better what the actual event is and what do you mean?

(+ introduction also says planned to acquire - once again meaning it didn't happen and it was just an inquiry, nothing else)

and companies always tries to buy other successful business entities , makes inquiries, makes offers (fun example: google, myspace, mtv, friendster, yahoo, aol, microsoft all tried to buy facebook). Making an offer or asking around doesn't mean that they will succeed in buying out the companies. It's just everyday business happening.
 
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There is connection with Colony Capital (Tom Barrack), Tohme, AEG, Branca & Dileo.

So why were Colony inquiring about Sony/AEG? Its not like Sony are going to want to give it up? Unless CC wanted to buy MJ's 25%.
 
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Dangerous Incorporated said:
^^Making another mountain out of a mole hill or just ignoring the fact that Tom Barrack was looking into buying Sony/ATV a month after MJ died. Thats what is important. Who cares about the friggin title, you're a mod, fix it if you have a problem...geez!:smilerolleyes:

There is connection with Colony Capital (Tom Barrack), Tohme, AEG, Branca & Dileo.

So why were Colony inquiring about Sony/AEG? Its not like Sony are going to want to give it up? Unless CC wanted to buy MJ's 25%.
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50%. lol. MJ's lawyers don't wanna give that up, either.
 
^^Oh I know ;)

IMO The estate should have enough to cover the creditors claims by now too.
 
While Im aware there will be all sorts of other costs that are contributed to creditors claims etc, with the $60M for initial TII footage sale, $200 - $250M for TII (theatre & DVD sales), $215M for unreleased collection + $250M for Cirque de Soleil (yes this is all gross figures), & MJ CD/DVD sales since death, surely the estate must be close to being able to cover the Sony loan and creditors claims.
 
Dangerous Incorporated said:
Only if MJ Estate pays back Sony for loans ;)
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I guess that's the big thorn in the whole story.
Wanting to meet debt but "being unable to"~I hope I never hear these words from the estate. Hopefully with the huge sales after Mike's death they have secured the necessary cash flow to meet debt.
Branca's word that the catalog is not for sale will have to be verified over the years.
"Receiving an offer that can not be refused and will put an end to all debts bla bla bla" is a scenario I haven't at all dismissed.Time will tell.
The value of this catalog is in the billions without projecting its future revenues to generations ahead.
So...I'll just KEEP WATCHIN'.
 
Dangerous Incorporated said:
While Im aware there will be all sorts of other costs that are contributed to creditors claims etc, with the $60M for initial TII footage sale, $200 - $250M for TII (theatre & DVD sales), $215M for unreleased collection + $250M for Cirque de Soleil (yes this is all gross figures), & MJ CD/DVD sales since death, surely the estate must be close to being able to cover the Sony loan and creditors claims.
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don't forget that we don't know whether or not those album and cirque de soleil numbers are up front payment or not. album deal ranges over 7 years and cirque de soleil doesn't even start for another year or so. Although the deals are done that doesn't necessarily mean that they received the money. Plus there might be penalties for early payment of loans. therefore they do not have to cover the debts instantly, as long as they pay them on time (by due date) everything is fine.
 
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ivy said:
cirque de soleil doesn't even start for another year or so. Although the deals are done that doesn't necessarily mean that they received the money.
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The estate is also fronting 50% of development & production costs for the Cirque projects. Not sure of the ballpark figure this amounts to but it's another expense that will have to be accounted for in the short term prior to the profits rolling in.

"The Estate of Michael Jackson and Cirque du Soleil will each own 50 percent of each Michael Jackson project, sharing equally in the cost of creating, developing, building and producing the projects and in the profits from each project. The Estate of Michael Jackson will also receive royalty payments on various aspects of its intellectual property used in the Michael Jackson projects."

http://www.cirquedusoleil.com/en/press/news/2010/michael-jackson.aspx
 
ivy said:
don't forget that we don't know whether or not those album and cirque de soleil numbers are up front payment or not. album deal ranges over 7 years and cirque de soleil doesn't even start for another year or so. Although the deals are done that doesn't necessarily mean that they received the money. Plus they might be penalties for early payment of loans. therefore they do not have to cover the debts instantly, as long as they pay them on time (by due date) everything is fine.
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Being the shrewd businessman Branca is, Im sure he got the money up front from everyone. Even MJ would get a significant portion up front.

Also the estate made sure they got MJs life insurance payout BEFORE his cause of death was determined. So with deals like this, Im sure Branca got the a significant amount of the money up front. Although there is no proof of this apart from Branca's past business dealings to go by.
 
honeysucklejasmine said:
The estate is also fronting 50% of development & production costs for the Cirque projects. Not sure of the ballpark figure this amounts to but it's another expense that will have to be accounted for in the short term prior to the profits rolling in.
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Which I assume is going to be in the hundred millions, since these shows are supposed to be the most expensive ones ever by Cirque? Maybe another loan on the catalog?

http://www.nytimes.com/2010/04/21/arts/music/21jackson.html
"He [Lamarre] added that the Jackson productions would be the most expensive the company had ever produced; “Love” reportedly cost $175 million to mount, and “KÀ,” which opened in Las Vegas in 2005, was said to cost $220 million."
 
honeysucklejasmine said:
The estate is also fronting 50% of development & production costs for the Cirque projects. Not sure of the ballpark figure this amounts to but it's another expense that will have to be accounted for in the short term prior to the profits rolling in.

"The Estate of Michael Jackson and Cirque du Soleil will each own 50 percent of each Michael Jackson project, sharing equally in the cost of creating, developing, building and producing the projects and in the profits from each project. The Estate of Michael Jackson will also receive royalty payments on various aspects of its intellectual property used in the Michael Jackson projects."

http://www.cirquedusoleil.com/en/press/news/2010/michael-jackson.aspx
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And the Estate wouldnt front that money unless it they knew 100% they would get it back 10 fold.

There is also the possibility that the Estate only received a % of that $250M and the other % is used for production costs.



At either rate, I still would like to know why Colony Capital were inquiring on the Sony/ATV catalogue.
 
princessleia said:
Maybe another loan on the catalog?
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I don't think so. I believe that they would plan for that. actually let me give an example.

I'm making all these numbers for the sake of an example.
Let's assume there's a $300M loan on the catalog and the estate earned $300M in net profits and $40M of this loan is due by the year end.

Now some people argue that as the estate earned the $300M they should pay for the loan and close that. However that might not be the best solution.

A better solution would be to pay the $40M due on the loan (as it is paid on time everything is fine) and then such as use $100M on development cost of cirque de soleil show, spend $50M on operating costs/ salaries/taxes etc, use $50M on other projects and hold on to $60M for security (such as make sure that they have money in hand -god forbid if they lose the Allgood case etc).

Simply put we don't know the net income, we don't know the costs associated with the projects etc etc. It might not be in their best interest to pay off the loan on Sony/ ATV instantly. As long as they pay whatever is due by the due date everything is fine.

Dangerous Incorporated said:
At either rate, I still would like to know why Colony Capital were inquiring on the Sony/ATV catalogue.
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and Why wouldn't they? there might have been inquiries about buying the catalog when MJ alive as well - who knows?. Like I said before we are talking about businesses whose only aim to make a profit. Sony/Atv catalog is a highly profitable investment. When Michael died and as his debts are common knowledge , they just wanted to know whether it was for sale or not. It's just business as usual. (And don't forget colony capital was not the only one, 4 companies/people made inquiries.)

Plus personally for me "they were after the catalog and therefore they killed him" argument does not make sense. A living and in debt MJ was more likely to be forced to sell the catalog then his estate which happens to make major multi million dollar deals.
 
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Dangerous Incorporated said:
And the Estate wouldnt front that money unless it they knew 100% they would get it back 10 fold.
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I agree, but doesn't that simply make good business sense?


At either rate, I still would like to know why Colony Capital were inquiring on the Sony/ATV catalogue.
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Umm...because they wanted to buy it? Not sure why this is such an issue: a successful company inquired about the availability of an asset, the estate have been pretty emphatic in their position that it isn't for sale. End of story surely, irrespective of CC's connections to Michael?
 
^^^
takeover can only happen if the company is for sale (and accepting bids and the highest bidder buys the company) or if it's publicly traded (you buy at least 51% of the shares and therefore control/own the firm).

Neither is true for Sony/ ATV.
 
ivy said:
^^^
takeover can only happen if the company is for sale (and accepting bids and the highest bidder buys the company) or if it's publicly traded (you buy at least 51% of the shares and therefore control/own the firm).

Neither is true for Sony/ ATV.
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Of course not.
It was only a example in general what is daily buiness in high economic sectors (to inquire/to stay informed about the market value which does not automaticly imply bad intentions).
 
jrsfan said:
I believe RB said the loan was refinanced for $370 million in 2007. I heard it in an interview.
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I listened to her interview again with Geraldo & she said it was refinanced for $360 Million in 2007.
 
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