More from this creator
Other episodes by Kitty Cat.
More like this
If you liked this, try these.
Transcript
The full episode, in writing.
In 1985, Michael Jackson acquired ATV Music, a publishing company that owned the rights to nearly 4,000 songs, including the majority of the Lennon–McCartney catalog written by John Lennon and Paul McCartney. Jackson paid $47.5 million for ATV Music, outbidding other competitors such as Charles Koppelman, Marty Bandier, Virgin Records, and financier Charles Knapp. Paul McCartney and Yoko Ono were both contacted about bidding for ATV but declined, with McCartney calling it "too pricey" and Ono satisfied not to enter the dispute.
The ATV catalog Jackson acquired included almost every Beatles song written by Lennon and McCartney. The only notable exception was "Penny Lane," which had been given as a gift to the teenage daughter of Robert Holmes à Court, the previous owner of ATV, before the sale. Holmes à Court secured Jackson's winning bid not just by price, but also by demanding a swift closing, a visit to Australia for a charity telethon, and the establishment of a scholarship in Jackson’s name.
In 1995, a decade after the purchase, Sony offered Michael Jackson $110 million for a 50% stake in a joint publishing venture that merged ATV Music and Sony’s own publishing division. The deal was completed during a concert in Tokyo, with Jackson essentially selling half-ownership of the Beatles’ and other songs but retaining the publishing rights to his own compositions through the Mijac catalog, which was not included in the deal. The resulting company, Sony/ATV Music Publishing, became the world’s second largest music publisher at the time.
Michael P. Schulhof, then President and CEO of Sony Corporation of America, publicly praised Jackson’s business acumen, specifically his understanding of the importance of copyrights in expanding creative and technological horizons. Administrative power in Sony/ATV was shared. Sony installed Paul Russell as chairman, while Jackson served as a company director and attended board meetings. Both Sony and Jackson held veto power, so any major decision required agreement from both sides.
Paul McCartney expressed disappointment at Jackson’s acquisition of the Beatles catalog. On the Late Show with David Letterman after Jackson’s death, McCartney recounted how he approached Jackson for a more favorable royalty arrangement for Lennon–McCartney songs, only to be told, “That’s just business, Paul.” This exchange contributed to a gradual cooling in their personal friendship. Jackson, for his part, was reported to have been exasperated by McCartney’s reaction, noting that McCartney had declined to invest in the catalog when offered the chance and, at the time, was earning $41 million annually in royalties with a net worth of $560 million.
Yoko Ono, Lennon’s widow, publicly approved of Jackson’s ownership of the Beatles songs, calling it a “blessing” and stating that an artist-owner would treat the songs with more care than a traditional businessman. She also noted that if she or McCartney had acquired the catalog, it would have sparked further controversy and arguments.
The partnership between Jackson and Sony was marked by frequent friction. As Sony/ATV grew, Jackson and his advisors became increasingly concerned about Sony’s influence and the company’s intentions. In 2006, Sony gained operational control of Sony/ATV and secured an option to buy half of Jackson’s stake in the company for $250 million at any time. This provision meant that Sony could force the sale of Jackson’s interest under pre-agreed terms, regardless of the catalog’s market value.
Financial pressures on Jackson mounted in the 2000s, with debts driven in part by extravagant spending and legal expenses. In 2005, Jackson’s own financial records showed his 50% share in Sony/ATV was worth $390.6 million, valuing the catalog at approximately $781.2 million. Defense attorney Thomas Mesereau claimed in court that the entire catalog was valued between $4 billion and $5 billion, a figure much higher than contemporary industry estimates.
Sony/ATV continued to expand through acquisitions while Jackson was a co-owner. In 2002, the company bought Acuff-Rose Music for $157 million, acquiring rights to 55,000 country songs, including works by Hank Williams and Roy Orbison. In 2007, Sony/ATV purchased Famous Music for $370 million, gaining a catalog of over 125,000 songs, including the rights to “Moon River,” “Footloose,” and hits by Eminem, Akon, Shakira, and Beck.
The feud between Michael Jackson and Sony intensified around the time of Jackson’s final studio album, Invincible, released in 2001. Jackson publicly accused Sony executives of sabotaging promotion for the album, claiming they deliberately withheld support to pressure him into selling his remaining stake in Sony/ATV. Jackson’s contract with Sony made it difficult for him to leave the label without incurring severe financial penalties, and Sony’s control over the joint publishing venture left the singer feeling boxed in.
In 2016, seven years after Jackson’s death, Sony acquired the Jackson estate’s remaining 50% stake in Sony/ATV for $750 million, gaining full control of the company. This transaction valued Sony/ATV at between $2.2 billion and $2.4 billion, including debt. The Jackson estate retained control of the Mijac Music catalog, which contains the rights to Jackson’s own songs and master recordings. This catalog continued to generate substantial income for Jackson’s heirs.
In 2024, the Jackson estate sold half of Jackson’s stake in Mijac Music to Sony Music Group for $600 million. This deal did not affect the previous sale of the Sony/ATV stake, but it placed a significant portion of Jackson’s own songwriting catalog under Sony’s corporate ownership for the first time.
At its peak, Sony/ATV administered over six million songs and became the largest music publishing administrator in the world, following its acquisition of EMI Music Publishing for $2.2 billion in 2012. The Jackson estate retained a 10% stake in EMI Publishing until 2018, when Sony bought it out for $287.5 million. Sony’s subsequent $2.3 billion purchase of Mubadala’s 60% equity in EMI Music Publishing in November 2018 brought the entire EMI catalog under Sony’s ownership.
Paul McCartney sued Sony/ATV in 2017 to reclaim his share of the Beatles catalog, citing U.S. copyright law that allows authors to reclaim rights after 56 years. The suit was settled confidentially later that year.
After Jackson’s death in 2009, global demand for his music surged, and his estate saw a major spike in sales and royalties. The value of the assets he had assembled—including his share of Sony/ATV and his own music—became some of the most valuable in entertainment history. At least one Beatles song, “Come Together,” was covered by Jackson after he acquired the publishing rights; it appeared on his HIStory album in 1995.
By 2025, Sony Music Publishing owned or administered over six million songs, cementing its dominance in the global music industry and making the Michael Jackson and Sony battle one of the most consequential power struggles over music rights and creative control in entertainment history.