Sony proceeds with plan to sell music publishing unit: WSJ

[Soundmind]

Is that true? Is that what would happen if they sold the assets? Katherine is not part of the Family Trust?

I hope Branca can get Sony's half, actually. I loved the fact that Michael bought the ATV catalog back in the day-as a single owner-I can't think of another better investment for him-the history and the heritage of the music of the past and future is how Michael was himself.

It is up to the executors to sell and it is up to them to distribute money. I said if they were to ask Katherine then she would say NO.

 

[CherubimII]

Michael Jackson’s Estate Explores Sony Buyout

By Claire Atkinson October 25, 2015 | 12:24am

http://nypost.com/2015/10/25/michael-jacksons-estate-explores-sony-buyout/

Are the Jackson kids going to be a billion dollars richer this New Year?
The estate of the late Michael Jackson co-owns the world’s biggest music publisher, Sony/ATV, which spins off around $100 million in profit each year under the aegis of its popular chief executive, Martin Bandier.

The asset is being evaluated by its two owners to figure out who buys out whom.
Sony Corp. has hired investment bank Allen & Co. to work on valuing its portion of the lucrative asset. The Japan-headquartered consumer-electronics giant recently triggered an option to acquire the 50 percent stake owned by Jackson's estate.

But Sony isn’t the only one coming up with a valuation. Jackson’s estate, repped by music lawyer John Branca, is also said to be talking about finding backers to buy out Sony. Most estimates put the Sony/ATV asset at around $2 billion to $2.5 billion.
The difficult challenge facing Branca is persuading the Jackson kids (Paris, Prince and Blanket) to forgo the giant check and double down and allow him to oversee the acquisition of the entire company with fresh backers.

Sources tell On the Money that probate courts would likely have to OK any decisions made on behalf of Jackson’s estate. As if things couldn’t get more complicated, there’s the side issue of the EMI catalog, which is owned separately but managed by Sony/ATV. A change of control might trigger an exit for the owners of the catalog, who potentially could move somewhere else.

 

[barbee0715]

^^this was posted on the previous page.

 

[barbee0715]

It is up to the executors to sell and it is up to them to distribute money. I said if they were to ask Katherine then she would say NO.

I know you said that and I apologize I wasn't more clear in my post.
I didn't think they would have to ask any beneficiaries but I was wondering if they DO sell, do they automatically distribute Katherine's share directly to her.
I'm not sure how Michael's trust is written as it pertains to her.

Sounds like no, and she'll keep her monthly allowance. I gather they would find something else to invest that money in to bring in income.

 

[Soundmind]

It is up to them if they want to invest or sell and distribute the money to the beneficiaries and that's why the jacksons were desperate to get an executor seat.

 

[Tygger]

Barbee0715, the facts:

- whether NL or Sony/ATV, any possible sale proceeds will not be distributed to the beneficiaries.
- proceeds will go to debt and expenses of running the estate.
- if anything is left after debt/expenses and the looming IRS tax bill, it would be distributed 80% to the beneficiaries and 20% to charity(ies).

 

[Bubs]

I don`t think Branca/McClain need permission from Kathrine and kids for buisiness-decissions, but they must have permission from probate court for such a big deal.

I don't think either, but they might ask her opinion, then KJ asks consulting payment for giving her opinion.

 

[elusive moonwalker]

I don't think either, but they might ask her opinion, then KJ asks consulting payment for giving her opinion.

And the consultancy fee is 40% of the worth of the cat! Only kidding...I think!

 

[Soundmind]

Barbee0715, the facts:

- whether NL or Sony/ATV, any possible sale proceeds will not be distributed to the beneficiaries.
- proceeds will go to debt and expenses of running the estate.
- if anything is left after debt/expenses and the looming IRS tax bill, it would be distributed 80% to the beneficiaries and 20% to charity(ies).

Which proves my point.

Selling the assets, paying the debts and taxes, and distributing what is left to the beneficiaries is the only scenario that allows Katherine to get the 40 percent her family has been dreaming about since MJ’s death. This is the only scenario where she would end up with at least one hundred million dollar to will to her extended family. Ido not believe even with the big fat checks she has been receiving from the estate she is able to save anything. Everyone seems around her and they are around her for a rea$$$on.

Therefore, any suggestion that the Jacksons would support a decision for long term investments is not only untrue but also laughable. Long term investments mean the estate is not going to sell the assets which is against the Jacksons’ best interests besides it means less cash at hand to be readily distributed to the beneficiaries because most of the cash generated is being used to pay loans to finance those long term investments.

A non-Jackson executor is the best thing MJ did. Branca has an interest in keeping the assets and expanding them . As long as the estate exists, he is an executor and he is getting paid handsomely for his work and MJ’s kids can’t be any more safe money-wise as they will grow up to find an ever expanding financial empire with less debts and taxes. On the other hand, the Jacksons will find themselves in the near future without Katherine . Then having a much wealthy estate would not matter any more to them.

 

[elusive moonwalker]

Kj will never get 40% of the estates worth. There is no lump sum to be paid to get. She gets a monthly allowance from 40% of the profits until she dies .that's it

 

[Soundmind]

Kj will never get 40% of the estates worth. There is no lump sum to be paid to get. She gets a monthly allowance from 40% of the profits until she dies .that's it

That's MJ's instruction. He also gave the executors enough powers to sell and distribute. If there were no more assets to run, then what do you think they will do? It is up to them really.

 

[Tygger]

Which proves my point.

Selling the assets, paying the debts and taxes, and distributing what is left to the beneficiaries is the only scenario that allows Katherine to get the 40 percent her family has been dreaming about since MJ’s death. This is the only scenario where she would end up with at least one hundred million dollar to will to her extended family. Ido not believe even with the big fat checks she has been receiving from the estate she is able to save anything. Everyone seems around her and they are around her for a rea$$$on.

???

What I posted was facts. Those facts do not support your views that you responded with.

Therefore, any suggestion that the Jacksons would support a decision for long term investments is not only untrue but also laughable. Long term investments mean the estate is not going to sell the assets which is against the Jacksons’ best interests besides it means less cash at hand to be readily distributed to the beneficiaries because most of the cash generated is being used to pay loans to finance those long term investments.

No one suggested such however; Michael's oldest is a Jackson and he is against the sale of NL as per his tweet. No Jackson has commented on the potential sale of Sony/ATV so, again, these are your views which the facts do not support.

A non-Jackson executor is the best thing MJ did. Branca has an interest in keeping the assets and expanding them . As long as the estate exists, he is an executor and he is getting paid handsomely for his work and MJ’s kids can’t be any more safe money-wise as they will grow up to find an ever expanding financial empire with less debts and taxes. On the other hand, the Jacksons will find themselves in the near future without Katherine . Then having a much wealthy estate would not matter any more to them.

More views however; you cannot safely state the children will be safe financially. You cannot predict the financial results of the pending sales of NL and Sony/ATV as well as the looming IRS tax bill.

That's MJ's instruction. He also gave the executors enough powers to sell and distribute. If there were no more assets to run, then what do you think they will do? It is up to them really.

The only assets the children will have is their current home, a condominium, and the father's catalog, MiJac after these pending sales. Do you believe that to be an "ever expanding financial empire?" The two major assets Michael had, NL and Sony/ATV, are both pending sale. Once those are sold, it will be very interesting to see what remains for the beneficiaries.

 

[ivy]

The only assets the children will have is their current home, a condominium, and the father's catalog, MiJac after these pending sales.

they also have hayvenhurst, some rights in J5 masters, personal property (MJ's stuff at storage) and image and likeliness.

Do you believe that to be an "ever expanding financial empire?" The two major assets Michael had, NL and Sony/ATV, are both pending sale. Once those are sold, it will be very interesting to see what remains for the beneficiaries.

Well two assets that have debt on them are Neverland and Sony/ATV and there is also the tax bill. If those assets gets sold (note: I'm not saying they should be sold, I'm talking hypothetically) and the debts & estate taxes gets paid and Estate becomes debt free, every money Estate brings will be a positive addition to the value.

 

[Tygger]

they also have hayvenhurst, some rights in J5 masters, personal property (MJ's stuff at storage) and image and likeliness.

Nice however; NL and Sony/ATV are much nicer. Tis why Michael fought so hard to retain them.

Well two assets that have debt on them are Neverland and Sony/ATV and there is also the tax bill. If those assets gets sold (note: I'm not saying they should be sold, I'm talking hypothetically) and the debts & estate taxes gets paid and Estate becomes debt free, every money Estate brings will be a positive addition to the value.

In my view they will most likely be sold. After the tax bill, we will see how the beneficiaries fare. I hope the very best for them.

 

[krikzil]

Didn't the IRS value the NL share at only $1.5M?

MJ One continues to make a lot of money which is split 50/50. The kids are in no danger of poverty and are far better off now than when the Estate was first created.

 

[Annita]

Didn't the IRS value the NL share at only $1.5M?

.

I think it was zero.
I am confident that Branca will everything do to mantain the Sony/AtV-catalog

 

[ivy]

^^

Estate tax valued Neverland at 0. (meaning market value minus liabilities). IRS tax valued it at $1.7 Million

 

[krikzil]

I think it was zero.
I am confident that Branca will everything do to mantain the Sony/AtV-catalog

The Estate valued it at $0. The IRS, even with their much higher values on everything else, didn't put a value on NL that was that significant.

My money is on Branca too.

 

[krikzil]

^^

Estate tax valued Neverland at 0. (meaning market value minus liabilities). IRS tax valued it at $1.7 Million

Thanks! Didn't think it amounted to a "major asset" as compared to others.

ETA: what's mijac current worth? [$74M (Estate) vs $129M (IRS) at death I remember but brain fade at last accounting, sorry.]

 

[Bubs]

Removed

 

[marc_vivien]

http://www.forbes.com/sites/zackoma...-and-sonyatv-a-billion-dollar-thriller-looms/

Thirty years ago, Marty Bandier was preparing to offer an eccentric Australian billionaire $50 million for ATV, the music publishing catalogue home to the Beatles and others. He probably would have succeeded in purchasing it–had it not been for Michael Jackson.

Bandier learned this for himself when he arrived in London and met the aforementioned mogul, Robert Holmes a Court, who informed him the catalogue was off the market. Bandier immediately upped his offer by $500,000, but was told another bidder had included something unique: a charity performance at Holmes a Court’s home in Perth. The well-connected Bandier pressed on, saying he could bring just about any big act to Australia.

“No, no, you don’t understand,” said Holmes a Court. “I’m selling this to Michael Jackson.”

Bandier, who told me this anecdote while I was reporting my book Michael Jackson, Inc., eventually linked up with his desired catalogue: today, he’s the chief of Sony /ATV, a joint venture between the electronics giant and Jackson’s estate. The entity, created in the mid-1990s as part of a deal that earned Jackson over $100 million, is now estimated to be worth about $2 billion–and earlier this month, Sony decided to initiate a sale process.

Bandier reportedly sent a memo to his employees earlier this month saying Sony had triggered a clause in its agreement with the Jackson estate that could lead to one side buying out the other, or to an outside buyer coming in and purchasing half or all of Sony/ATV sometime in the coming months.

When I contacted Sony/ATV last week and asked for a comment from Bandier regarding the state of the sale process, representatives referred me to a Sony; a spokesperson there declined to comment. Some have speculated that the Japanese conglomerate is looking to sell its stake for the same reason it sold its New York headquarters for $1.1 billion in 2013: to raise cash.

John Branca, the co-executor of Jackson’s estate, told me that it’s too early to know who all the bidders would be, but that the estate would be among them. Said Branca: “We intend to buy the company.”

That’s a remarkable statement, considering the state of Jackson’s finances in the years before he passed away. The singer had accumulated nearly half a billion dollars in debt, most of it high-interest and taken out against his half of Sony/ATV.

But since his death in 2009, Jackson has pulled in over $1 billion in pretax earnings, enough to pay off his personal debts and more. He earned $115 million over the past year alone, easily garnering him the top spot on our Halloween-spooky list of Top Earning Dead Celebrities.

“This major disaster gave him a chance to shine,” says Josh Rubenstein, National Chair of Trusts and Estates at Katten Muchin Rosenman LLP. “Jackson’s untimely and dramatic death, with all the drama surrounding it, also creates this allure.”
With that sort of earning power continuing in seeming perpetuity, Jackson’s estate could conceivably work out financing, perhaps with a partner, to acquire Sony’s stake of its joint venture. And if recent trends in the music business cause the price tag to drop a bit, the chances improve.

“There is certainly concern due to the low royalties music steaming companies are paying to music publishers and songwriters,” says Dale Kawashima, a former president of ATV who now runs SongwriterUnvierse. “There’s great value in buying a great company like Sony/ATV, but there’s some uncertainty in terms of what the royalties will be moving forward.”


Another issue that could ding the catalogue’s value is the potential reversion of Lennon-McCartney copyrights. In the U.S., songs signed to publishers after 1972 revert to the creator after 35 years; for songs signed before then, the term is 56 years, which would put some of the Beatles’ songs in play in the not-so-distant future.

That said, it’s hard to know what sort of deals might have already been signed behind closed doors to extend Sony/ATV’s relationship with McCartney and/or the estate of Lennon. Either way, the aforementioned scenario would be for the U.S. only, and the Beatles certainly enjoy tremendous popularity around the world.

Sony/ATV’s roster is also stacked with other superstars from Taylor Swift to Eminem, with new ones being added nearly every day (most recently a cappella sensation Pentatonix). Potential bidders will likely use the 2011 sale of Warner Music Group, which valued the company at about $3 billion–roughly two-thirds of that coming from its publishing division–as a comparable deal.

Whatever happens to Sony/ATV, one thing seems certain: it will underscore Jackson’s little-known business savvy. He made his share of financial blunders, to be sure. But in death, it appears he’s either in line to make a billion-dollar purchase or earn a billion-dollar windfall. Watching this unfold should be nothing short of a thriller.

 

[krikzil]

I'm interested to see what valuation they finally do come up with in the end. I'd also rather have Branca put together a consortium than an outside buyer enter the picture, purchasing Sony's half. Never know how things might roll in the new partnership.

 

[mjjmsc]

it would be very good if the Estate could buy the other half, the catalog will be a good asset for the future.

 

[Annita]

Branca is really impressive offensively

 

[OnirMJ]

That deal MJ signed is moronic, idiotic, awful and I don't know what else. He always signed such stupid deals. Why would they have to sell their half if there is a bidder. Why Sony can't just sell their half and leave Estate's part alone if they don't want to sell. Of course Branca can't come up with billion $ in a month. My guess is that they'll have to sell it and all fanatics will attack Branca and the Estate and sadly MJ will turn in his grave because that's the one thing he was always frightened.

 

[Koopa Troopa]

Said Branca: “We intend to buy the company.”

That's what I'm talking about. I'm drooling over the prospect of MJ being the sole owner over this mega music empire.

http://haveforkwilleat.com/?attachment_id=3469

 

[Billie Jean 78]

Said Branca: “We intend to buy the company.”

That's what I'm talking about. I'm drooling over the prospect of MJ being the sole owner over this mega music empire.

http://haveforkwilleat.com/?attachment_id=3469

Don't drool to much. How on earth does Branca think the Estate would be able to afford this purchase if it still hasn't paid off all the debts???

 

[Koopa Troopa]

Don't drool to much. How on earth does Branca think the Estate would be able to afford this purchase if it still hasn't paid off all the debts???

It's THE John Branca. He'll find a way. Afterall, Branca was the one who masterminded MJ's purchase of the ATV catalog in the first place. I bet that he has a trick or two up his sleeve.

 

[Billie Jean 78]

It's THE John Branca. He'll find a way. Afterall, Branca was the one who masterminded MJ's purchase of the ATV catalog in the first place. I bet that he has a trick or two up his sleeve.

I wish he could pull this one off, but I don't see any comparison with the ATV deal. In 1984 Michael was able to cash out $ 50M. There is no way the Estate can fork out $ 1B, especially still having 100's of millions of unpaid debts.

 

[serendipity]

I'm sure Branca will form a consortium with other investors. Obviously the Estate alone won't be able to purchase it, but it could be the majority owner. Fingers crossed.