Sony/ATV Music Publishing is a music publishing company co-owned by The
Michael JacksonMichael Joseph Jackson was an American recording artist, entertainer, and businessman. Referred to as the King of Pop, or by his initials MJ, Jackson is recognized as the most successful entertainer of all time by Guinness World Records...
Family Trust and
Sony, commonly referred to as Sony, is a Japanese multinational conglomerate corporation headquartered in Minato, Tokyo, Japan and the world's fifth largest media conglomerate measured by revenues....
. The organisation was originally founded as
Associated TeleVisionAssociated Television, often referred to as ATV, was a British television company, holder of various licences to broadcast on the ITV network from 24 September 1955 until 00:34 on 1 January 1982...
(ATV) in 1955 by
Lew GradeLew Grade, Baron Grade , born Lev Winogradsky, was an influential Russian-born English impresario and media mogul.-Early years:...
. In 1957, ATV acquired
Pye RecordsPye Records was a British record label. In its first incarnation, perhaps Pye's best known artists were Lonnie Donegan , Petula Clark , The Searchers , The Kinks , Sandie Shaw and Brotherhood of Man...
as a wholly owned
subsidiaryA subsidiary company, subsidiary, or daughter company is a company that is completely or partly owned and wholly controlled by another company that owns more than half of the subsidiary's stock. The subsidiary can be a company, corporation, or limited liability company. In some cases it is a...
. At the time, Pye Records was one of the three major record companies in the UK and, along with
EMIThe EMI Group, also known as EMI Music or simply EMI, is a multinational music company headquartered in London, United Kingdom. It is the fourth-largest business group and family of record labels in the recording industry and one of the "big four" record companies. EMI Group also has a major...
and
Decca RecordsDecca Records began as a British record label established in 1929 by Edward Lewis. Its U.S. label was established in late 1934; however, owing to World War II, the link with the British company was broken for several decades....
, accounted for the vast majority of music records sold in the country. ATV Music Publishing was then created to exploit the
catalogueIn the music industry, a collection of musical compositions is cataloged into a music catalog. The owner owns the copyrights of the cataloged compositions.-See also:* Music publisher * History of music publishing...
of songs written by artists on the Pye Record label, and for the themes to Independent Television Corporation and ATV programmes. Grade established ATV's headquarters alongside those of Pye Records; off of Edgware Road, beside the
Marble ArchMarble Arch is a white Carrara marble monument that now stands on a large traffic island at the junction of Oxford Street, Park Lane, and Edgware Road, almost directly opposite Speakers' Corner in Hyde Park in London, England...
in
central LondonCentral London is the innermost part of London, England. There is no official or commonly accepted definition of its area, but its characteristics are understood to include a high density built environment, high land values, an elevated daytime population and a concentration of regionally,...
.
ATV Music Publishing and Pye Records were at the forefront of the British music explosion in the 1960s. The businesses held contracts with several US companies, allowing them to manufacture and distribute records in the UK. ATV Music Publishing and Grade acquired the rights to the
Lennon/McCartneyThe Lennon–McCartney songwriting partnership is one of the best-known and most successful musical collaborations in history...
song catalogue,
Northern SongsNorthern Songs was a company founded in 1963, by music publisher Dick James, Brian Epstein, John Lennon and Paul McCartney, to publish songs written by Lennon and McCartney , as well as songs written by George Harrison and Ringo Starr, who were all members of The Beatles...
, in 1968. The catalogue featured nearly every song written by
John LennonJohn Winston Lennon, MBE was an English musician and singer-songwriter who rose to worldwide fame as one of the founding members of The Beatles, one of the most commercially successful and critically acclaimed acts in the history of popular music...
and
Paul McCartneySir James Paul McCartney, MBE, Hon RAM, FRCM is an English musician, singer-songwriter and composer. Formerly of The Beatles and Wings , McCartney is listed in Guinness World Records as the "most successful musician and composer in popular music history", with 60 gold discs and sales of 100...
until
The BeatlesThe Beatles were an English rock band, active throughout the 1960s and one of the most commercially successful and critically acclaimed acts in the history of popular music. Formed in Liverpool, by 1962 the group consisted of John Lennon , Paul McCartney , George Harrison and Ringo Starr...
' split in 1970.
Grade's fortune began to dwindle as the 1980s approached and by the mid-1980s, ATV Music Publishing and Pye Records were both up for sale. The companies were bought by Australian businessman
Robert Holmes à CourtMichael Robert Hamilton Holmes à Court was an entrepreneur who became Australia's first businessman worth over a billion dollars before dying suddenly of a heart attack in 1990.Holmes à Court was one of the world's most feared corporate raiders through the 1980s, having built his empire...
, who disposed of them quickly and to his great profit. They were sold to Michael Jackson for $47.5 million in 1985. McCartney, who had told Jackson about the importance of owning publishing, admitted he felt somewhat undercut by the acquisition although he did not enter
biddingBidding is an offer of setting a price one is willing to pay for something. A price offer is called a bid. The term may be used in context of auctions, stock exchange, card games, or real estate transactions....
when it came up for sale in 1984. Previously, in 1981 McCartney had also let an offer to buy the ATV catalog for £20 million fall through. McCartney reportedly said about Jackson's acquisition, “I think it’s dodgy to do things like that, to be someone’s friend and then buy the rug they’re standing on.” But after the acquisition, McCartney and Jackson appeared together in a photograph to show that there was no bad blood between them and in July 2009, McCartney stated that "though Michael and I drifted apart over the years, we never really fell out, and I have fond memories of our time together."
In December 1995, ATV Music Publishing was merged with
Sony, commonly referred to as Sony, is a Japanese multinational conglomerate corporation headquartered in Minato, Tokyo, Japan and the world's fifth largest media conglomerate measured by revenues....
and renamed Sony/ATV Music Publishing. The company became the second largest music publisher in the world, owning the rights to songs by
The BeatlesThe Beatles were an English rock band, active throughout the 1960s and one of the most commercially successful and critically acclaimed acts in the history of popular music. Formed in Liverpool, by 1962 the group consisted of John Lennon , Paul McCartney , George Harrison and Ringo Starr...
,
Elvis PresleyElvis Aaron Presley was one of the most popular American singers of the 20th century. A cultural icon, he is widely known by the single name Elvis. He is often referred to as the "King of Rock and Roll" or simply "the King"....
,
EminemMarshall Bruce Mathers III , better known by his stage name Eminem or his alter ego Slim Shady, is an American rapper, record producer, songwriter and actor. Eminem's popularity brought his group project, D12, to mainstream recognition...
,
Bob DylanBob Dylan is an American singer-songwriter, musician, poet, film director and painter. He has been a major and profoundly influential figure in popular music and culture for five decades. Much of his most celebrated work dates from the 1960s when he was an informal chronicler and a seemingly...
, and
Willie NelsonWillie Hugh Nelson is an American country music singer-songwriter, as well as an author, poet, actor, and activist. The critical success of the album Shotgun Willie , combined with the critical and commercial success of Red Headed Stranger and Stardust , made Nelson one of the most recognized...
. The value of Sony/ATV Music Publishing has varied in reports. Industry experts have estimated the company to be worth as much as $1.5 billion.
Founding
Sony/ATV was originally founded as
Associated TelevisionAssociated Television, often referred to as ATV, was a British television company, holder of various licences to broadcast on the ITV network from 24 September 1955 until 00:34 on 1 January 1982...
(ATV) in the UK in 1955. It was formed by the
impresarioAn impresario is a person who organizes and often finances concerts, plays or operas; analogous to a film producer in filmmaking, television production and an angel investor in business...
Lew GradeLew Grade, Baron Grade , born Lev Winogradsky, was an influential Russian-born English impresario and media mogul.-Early years:...
, of the entrepreneurial Grade family. At this time, Grade had also founded the Independent Television Corporation (ITC), which featured stars such as
Patrick McGoohanPatrick Joseph McGoohan was an American-born actor, raised in Ireland and England, with an extensive stage and film career, most notably in the 1960s television series Danger Man , and The Prisoner, which he co-created...
,
Roger MooreSir Roger George Moore KBE , is an English actor, perhaps best known for portraying British secret agent James Bond in seven films from 1973 to 1985. He also portrayed Simon Templar in the long-running British television series The Saint.-Early life:Moore was born in Stockwell, London...
, and
Tony CurtisTony Curtis was an American film actor whose career spanned six decades, but had his greatest popularity during the 1950s and early 1960s. He acted in over 100 films in roles covering a wide range of genres, from light comedy to serious drama...
. ITC provided programmes to British and international
broadcastersBroadcasting is the distribution of audio and video content to a dispersed audience via any audio visual medium. Receiving parties may include the general public or a relatively large subset of thereof...
. ATV itself was originally one of these broadcasters; the company had been awarded a franchise in the mid-1950s to operate a new commercial television company in the UK. ATV was broadcast to the
English MidlandsThe Midlands, or the English Midlands, is the traditional name for the area comprising central England that broadly corresponds to the early medieval Kingdom of Mercia. It borders Southern England, Northern England, East Anglia and Wales. Its largest city is Birmingham, and it was an important...
as part of the
Independent TelevisionITV is the major commercial public service TV network in the United Kingdom. Launched in 1955 under the auspices of the Independent Television Authority to provide competition to the BBC, it is also the oldest commercial network in the UK...
(ITV) network. Business tycoon Louis Benjamin was also involved with Grade, as part of one of the three major record companies in the UK at the time. The company was
Pye RecordsPye Records was a British record label. In its first incarnation, perhaps Pye's best known artists were Lonnie Donegan , Petula Clark , The Searchers , The Kinks , Sandie Shaw and Brotherhood of Man...
which, along with
EMIThe EMI Group, also known as EMI Music or simply EMI, is a multinational music company headquartered in London, United Kingdom. It is the fourth-largest business group and family of record labels in the recording industry and one of the "big four" record companies. EMI Group also has a major...
and
Decca RecordsDecca Records began as a British record label established in 1929 by Edward Lewis. Its U.S. label was established in late 1934; however, owing to World War II, the link with the British company was broken for several decades....
, accounted for the vast majority of music records sold in the UK. In 1957, ATV acquired Pye Records as a wholly owned
subsidiaryA subsidiary company, subsidiary, or daughter company is a company that is completely or partly owned and wholly controlled by another company that owns more than half of the subsidiary's stock. The subsidiary can be a company, corporation, or limited liability company. In some cases it is a...
. Grade and Benjamin held most of the shares. ATV Music Publishing was then created to exploit the catalogue of songs written by artists on the Pye Record label, and for the themes to ITC and ATV television programmes. The UK rights to some of the rock 'n' roll music from the US were also bought by ATV. Grade established ATV's headquarters alongside those of Pye Records; off Edgware Road, beside the
Marble ArchMarble Arch is a white Carrara marble monument that now stands on a large traffic island at the junction of Oxford Street, Park Lane, and Edgware Road, almost directly opposite Speakers' Corner in Hyde Park in London, England...
in
central LondonCentral London is the innermost part of London, England. There is no official or commonly accepted definition of its area, but its characteristics are understood to include a high density built environment, high land values, an elevated daytime population and a concentration of regionally,...
.
Early history
The 1950s/1960s was a good period for the Grade family and their companies. Their television operation, which held a vast monopoly of advertising revenues, was part of a system described as having a "license to print money" by
Roy Thomson, 1st Baron Thomson of FleetRoy Herbert Thomson, 1st Baron Thomson of Fleet GBE was a Canadian newspaper proprietor and media entrepreneur.-Career:...
. Pye Records was at the forefront of the British music explosion in the 1960s.
The SearchersThe Searchers are an English beat group, who emerged as part of the 1960s Merseybeat scene along with The Beatles, The Fourmost, The Merseybeats, The Swinging Blue Jeans, and Gerry & The Pacemakers....
,
The KinksThe Kinks were an English rock band formed in Muswell Hill, North London, by brothers Ray and Dave Davies in 1964. Categorised in the United States as a British Invasion band, The Kinks are recognised as one of the most important and influential rock acts of the era. Their music was influenced by a...
,
DonovanDonovan Donovan Donovan (born Donovan Philips Leitch (born 10 May 1946) is a Scottish singer-songwriter and guitarist. Emerging from the British folk scene, he developed an eclectic and distinctive style that blended folk, jazz, pop, psychedelia, and world music...
,
The Moody BluesThe Moody Blues are an English rock band. Among their innovations was a fusion with classical music, most notably in their 1967 album Days of Future Passed....
,
Mungo JerryMungo Jerry is an English rock group whose greatest success was in the early 1970s, though they have continued throughout the years with an ever-changing line-up, always fronted by Ray Dorset. They are remembered above all for their hit "In the Summertime". It remains their most successful and most...
and
Petula ClarkPetula Clark, CBE is an English singer, actress, and composer whose career has spanned seven decades.Clark's professional career began as an entertainer on BBC Radio during World War II...
were some of the artists that Pye Records released music by. The record label also had contracts with a several US companies, allowing them to manufacture and distribute records in the UK.
Chess RecordsChess Records was an American record label based in Chicago, Illinois. It specialized in blues, R&B, soul, gospel music, early rock and roll, and occasional jazz releases....
was among those, and counted
Chuck BerryCharles Edward Anderson "Chuck" Berry is an American guitarist, singer, and songwriter, and one of the pioneers of rock and roll music. With songs such as "Maybellene" , "Roll Over Beethoven" , "Rock and Roll Music" and "Johnny B...
as one of their top artists. ATV Music and Lew Grade, who had been
knightA knight was a member of a class of lower nobility in the High Middle Ages.By the Late Middle Ages, the rank had become associated with the ideals of chivalry, a code of conduct for the perfect courtly Christian warrior....
ed by this time, acquired the rights to the
Lennon/McCartneyThe Lennon–McCartney songwriting partnership is one of the best-known and most successful musical collaborations in history...
song catalogue,
Northern SongsNorthern Songs was a company founded in 1963, by music publisher Dick James, Brian Epstein, John Lennon and Paul McCartney, to publish songs written by Lennon and McCartney , as well as songs written by George Harrison and Ringo Starr, who were all members of The Beatles...
, in 1968. The catalogue featured every song written by
John LennonJohn Winston Lennon, MBE was an English musician and singer-songwriter who rose to worldwide fame as one of the founding members of The Beatles, one of the most commercially successful and critically acclaimed acts in the history of popular music...
and
Paul McCartneySir James Paul McCartney, MBE, Hon RAM, FRCM is an English musician, singer-songwriter and composer. Formerly of The Beatles and Wings , McCartney is listed in Guinness World Records as the "most successful musician and composer in popular music history", with 60 gold discs and sales of 100...
until
The BeatlesThe Beatles were an English rock band, active throughout the 1960s and one of the most commercially successful and critically acclaimed acts in the history of popular music. Formed in Liverpool, by 1962 the group consisted of John Lennon , Paul McCartney , George Harrison and Ringo Starr...
' legal split in 1971. Northern Songs had been co-owned and administered by
Brian EpsteinBrian Samuel Epstein , was an English music entrepreneur, and is best known for being the manager of The Beatles up until his death. He also managed several other musical artists such as Gerry & the Pacemakers, Billy J. Kramer and the Dakotas, Cilla Black, The Remo Four & The Cyrkle...
and
Dick JamesDick James , born Reginald Leon Isaac Vapnick, was a music publisher and the founder of the DJM record label and recording studios, as well as The Beatles' publisher Northern Songs.-Early life:...
. Upon Epstein's death in 1967, James, who was approaching retirement, put the company up for sale. Lennon and McCartney, upset that the songs they had written were not theirs legally, attempted to gain ownership of the publishing rights. Their bid to gain control, part of a long and acrimonious fight, failed. The financial clout of Grade, their adversary in the bidding war, ensured that the music written by the two Beatles passed into the control of ATV.
ATV Music Publishing remained a successful organisation in the music industry throughout the 1970s. Len Beadle, the company's chief executive, signed up many songwriters and bought numerous song catalogues. He acquired the songs written by Lieber and Stoller, which included the
Elvis PresleyElvis Aaron Presley was one of the most popular American singers of the 20th century. A cultural icon, he is widely known by the single name Elvis. He is often referred to as the "King of Rock and Roll" or simply "the King"....
hits "
Hound Dog"Hound Dog" is a twelve-bar blues written by Jerry Leiber and Mike Stoller and originally recorded by Willie Mae "Big Mama" Thornton in 1952. Other early versions illustrate the differences among blues, country, and rock and roll in the mid-1950s. The 1956 remake by Elvis Presley is the best-known...
" and "
Jailhouse Rock"Jailhouse Rock" is a song written by Jerry Leiber and Mike Stoller that first became a hit for Elvis Presley. The song was released as a 45rpm single on September 24, 1957, to coincide with the release of Presley's motion picture, Jailhouse Rock...
". The Lieber and Stoller catalogue also contained
Little RichardRichard Wayne Penniman , known by the stage name Little Richard, is an American singer, songwriter, musician, recording artist, and actor, considered key in the transition from rhythm and blues to rock and roll in the 1950s. He was also the first artist to put the funk in the rock and roll beat and...
's greatest hits. The catalogue acquisitions, along with the continuing royalties from Lennon and McCartney, ensured that large amounts of money were frequently coming in for ATV Music Publishing. Despite the success of the music publishing organisation, other ventures formed by Grade were not performing as well. Pye Records, which continued to distribute music from artists such as
Carl DouglasCarl Douglas is a former Jamaican-born, UK-based, singer, best known for his song "Kung Fu Fighting", which hit number one in both the UK Singles Chart and the U.S. Billboard Hot 100 in 1974. The R.I.A.A. awarded gold disc status on 27 November, and it won a Grammy Award for Best Selling Single...
and
Barry WhiteBarry White, born Barry Eugene Carter , was an American composer and singer-songwriter.A five-time Grammy Award-winner known for his distinctive bass voice and romantic image, White's greatest success came in the 1970s as a solo singer and with the Love Unlimited Orchestra, crafting many enduring...
, was failing to bring in large amounts of money. The television arm of ATV lost its government-granted license and their English Midlands franchise was awarded to Central Television, in which Grade had a minority stake. ITC also lost money on the flop movie
Raise the Titanic. Grade's fortune diminished as the 1980s approached.
Acquisition
By the mid-1980s, ATV Music Publishing and Pye Records were both up for sale. The companies were bought relatively cheaply by Australian businessman
Robert Holmes à CourtMichael Robert Hamilton Holmes à Court was an entrepreneur who became Australia's first businessman worth over a billion dollars before dying suddenly of a heart attack in 1990.Holmes à Court was one of the world's most feared corporate raiders through the 1980s, having built his empire...
, who aqcuired Associated Communications Corporation (the parent company) in 1982, asset-stripped them and sacked many long serving employees, before selling them on again. During this time, American singer
Michael JacksonMichael Joseph Jackson was an American recording artist, entertainer, and businessman. Referred to as the King of Pop, or by his initials MJ, Jackson is recognized as the most successful entertainer of all time by Guinness World Records...
was recording "
Say Say Say"Say Say Say" is a pop song written and performed by Paul McCartney and Michael Jackson. The track was produced by George Martin for McCartney's fifth solo album, Pipes of Peace...
" for Paul McCartney's
Pipes of Peace album. Jackson stayed at the home of McCartney and his wife
LindaLinda Louise McCartney, Lady McCartney was an American photographer, musician and animal rights activist. Her father and mother were Lee Eastman and Louise Sara Lindner Eastman....
during the recording sessions, becoming friendly with both. One evening whilst at the dining table, McCartney brought out a thick, bound notebook displaying all the songs to which he owned the publishing rights. Jackson grew more excited as he examined the pages. He inquired about how to buy songs and what the songs were used for. McCartney explained that music publishing was a way to make big money. Jackson replied by telling McCartney that he would buy The Beatles' songs one day. McCartney laughed, saying "Great. Good joke."
Jackson was first informed that the ATV catalog was up for sale in Sept. 1984 by his attorney
John BrancaJohn G. Branca is an entertainment lawyer who specializes in representing rock and roll acts, as well as independent investors, music publishing catalogs, and independent music labels...
, who had put together Jackson's earlier catalog acquisitions. Warned of the competition he would face in buying such popular songs, Jackson remained resolute in his decision to purchase them. Branca approached McCartney's attorney to query whether the Beatle was planning to bid. The attorney stated he wasn't; it was "too pricey". According to Bert Reuter, who negotiated the sale of ATV Music for Holmes à Court, "We had given Paul McCartney first right of refusal but Paul didn't want it at that time." Lennon's widow,
Yoko Onois a Japanese artist, musician, author and peace activist, known for her work in avant-garde art, music and filmmaking as well as her marriage to John Lennon...
had been contacted as well but also did not enter bidding.
McCartney had previously attempted to purchase the catalog alongside Ono in 1981. He was offered the catalog for £20 million ($40 million USD) and proposed the pair would each pay £10 million. Ono refused as she thought it was too high a price. McCartney spoke about the offer at a press conference in April, 1990, explaining that Ono "actually said 'I think we can get it for 5.' So I said, 'Well ok, you know, let's see what we can do.' And we couldn't." Not wanting buy the songs himself and potentially be seen as being "grabby" for "owning John Lennon's bit of the songs", McCartney let the offer fall through.
The competitors in the 1984 sale of ATV Music included
Charles KoppelmanCharles Koppelman is the chairman of Martha Stewart Living Omnimedia, and was Martha Stewart's right-hand man on NBC's The Apprentice: Martha Stewart in 2005.-Career:...
and Marty Bandier’s New York-based The Entertainment Co.,
Virgin RecordsVirgin Records is a British record label founded by English entrepreneur Richard Branson, Simon Draper, and Nik Powell in 1972. The company grew to be a worldwide music phenomenon, with platinum performers such as Roy Orbison, Devo, Genesis, Keith Richards, Janet Jackson, Culture Club, Lenny...
, New York real estate tycoon
Samuel J. LeFrakSamuel J. LeFrak was a noted landlord who chaired a private building firm, the LeFrak Organization. The LeFrak Organization was also ranked 45th on the Forbes list of top 500 private companies. The development firm is best known for major development projects in Battery Park City, LeFrak City in...
, and financier Charles Knapp. On Nov. 20, 1984, Jackson sent a bid of $46 million to Holmes à Court. Branca suggested the amount of the bid after having spent time evaluating the earnings of the catalog and being aware of another bid for $39 million. Jackson was only interested in the music copyrights but the package also included buildings, a
recording studioA recording studio is a facility for sound recording and mixing. Ideally both the recording and monitoring spaces are specially designed by an acoustician to achieve optimum acoustic properties...
, some studio equipment and
life insuranceLife insurance is a contract between an insurance policy holder and an insurer, where the insurer promises to pay a designated beneficiary a sum of money upon the death of the insured person. Depending on the contract, other events such as terminal illness or critical illness may also trigger...
policies on the Beatles (presumably Lennon's was collected in 1980). The two sides signed a non-binding
memorandumA memorandum of understanding is a document describing a bilateral or multilateral agreement between parties. It expresses a convergence of will between the parties, indicating an intended common line of action. It is often used in cases where parties either do not imply a legal commitment or in...
of mutual interest in Dec. 1984 and Jackson's team began a four-month process of verifying ATV Music's legal documents, financial reports and every significant composition in the nearly 4000-song catalog.
The two sides began drafting contracts in Jan. 1985 and follow-through meetings began on Mar. 16. Jackson's team described the negotiations as frustrating, with frequent shifts of position by the other side. One Holmes à Court's rep described the negotiations as a "game of poker." Jackson's team thought they had reached a deal several times but new bidders would enter the picture or they would encounter new areas of debate. The prospective deal went through eight drafts. In May 1985, Jackson's team walked away from negotiations after having spent hundreds of hours and over $1 million. In June 1985, they learned Koppelman/Bandier had made a tentative agreement with Holmes à Court to buy the catalog for $50 million.
But in early Aug., Holmes à Court contacted Jackson and talks resumed. Jackson only raised his bid to $47.5 million but he had the advantage of being able to close the deal faster, having completed
due diligence"Due diligence" is a term used for a number of concepts involving either an investigation of a business or person prior to signing a contract, or an act with a certain standard of care. It can be a legal obligation, but the term will more commonly apply to voluntary investigations...
of ATV Music prior to any formal agreement. He also agreed visit Australia as a guest of Holmes à Court and appear on the
Channel Seven Perth TelethonThe Channel Seven Perth Telethon, known simply as Telethon, is an annual telethon produced by TVW, a Seven Network owned television station in Perth, Western Australia for two main beneficiaries; Princess Margaret Hospital for Children, and the Telethon Institute for Child Health Research, plus...
. Holmes à Court included some more assets and agreed to established a scholarship in Jackson's name at a U.S. university. Branca closed the deal and purchased ATV Music on Jackson's behalf for $47.5 million on Aug. 10. 1985. In Oct. 1985, Jackson fulfilled his contract provision to visit
Perth, Western AustraliaPerth is the capital and largest city of the Australian state of Western Australia and the fourth most populous city in Australia. The Perth metropolitan area has an estimated population of almost 1,700,000....
and appear on the telethon, where he spoke briefly and met with two children.
In an analysis of the acquisition,
Los Angeles TimesThe Los Angeles Times is a daily newspaper published in Los Angeles, California, since 1881. It was the second-largest metropolitan newspaper in circulation in the United States in 2008 and the fourth most widely distributed newspaper in the country....
noted that if
Yesterday"Yesterday" is a song originally recorded by The Beatles for their 1965 album Help!. The song first hit the United Kingdom top 10 three months after the release of Help!. The song remains popular today with more than 1,600 cover versions, one of the most covered songs in the history of recorded...
were to earn $100,000 a year in royalties, the Lennon estate and McCartney would divide 50% of the income; $25,000 each. The publisher, Jackson, would receive the other 50%; $50,000. It was mentioned that "Yesterday" probably earns more than $100,000 a year. The publisher would also control the use of the song in films, commercials and stage productions. Jackson went on to use the Beatles' songs in numerous commercials, feeling that it would enable a new generation of fans to enjoy the music. McCartney, who himself had used the
Buddy HollyCharles Hardin Holley , known professionally as Buddy Holly, was an American singer-songwriter and a pioneer of rock and roll...
song catalogue in commercials, felt saddened. Privately, Jackson was reported to have expressed exasperation at McCartney's attitude; he felt that the musician should have paid for the songs he had written. At the time, McCartney was one of the richest entertainers in the world, with a net worth of $560 million and a royalty income of $41 million. Jackson stated, "If he didn't want to invest $47.5 million in his own songs, then he shouldn't come crying to me now".
Appearing on the
Late Show with David LettermanLate Show with David Letterman is a U.S. late-night talk show hosted by David Letterman on CBS. The show debuted on August 30, 1993, and is produced by Letterman's production company, Worldwide Pants Incorporated. The show's music director and band-leader of the house band, the CBS Orchestra, is...
shortly after Jackson died in 2009, McCartney spoke about Jackson's acquisition of the Beatles songs and the impact of it on their relationship:
And which was, you know, that was cool, somebody had to get it, I suppose. What happened actually was then I started to ring him up. I thought, ok, here's the guy historically placed to give Lennon/McCartney a good deal at last. Cuz we got signed when we were 21 or something in a back alley in Liverpool. And the deal, it's remained the same, even though we made this company the most famous...hugely successful. So I kept thinking, it was time for a raise. Well you would, you know. [David Letterman: Yes I think so.] And so it was great. But I did talk to him about it. But he kind of blanked me on it. He kept saying, "That's just business Paul." You know. So, "yeah it is" and waited for a reply. But we never kind of got to it. And I thought, mmm...So we kind of drifted apart. It was no big bust up. We kind of drifted apart after that. But he was a lovely man, massively talented and we miss him.
Ono was pleased that Jackson had acquired Northern Songs and called it a "blessing". Speaking in November, 1990, Ono stated, "Businessmen who aren't artists themselves wouldn't have the consideration Michael has. He loves the songs. He's very caring." She added that if she and McCartney were to own the songs, there would certainly be arguments. Ono explained that neither she or McCartney needed that. "If Paul got the songs, people would have said, 'Paul finally got John'. And if I got them, they'd say, 'Oh, the
dragon ladyDragon Lady is a phrase referring to a seductive, treacherous, domineering, and/or tyrannical woman, especially an Asian one. Women famously referred to as "Dragon Lady" include:*Madame Ngo Dinh Nhu, First Lady of South Vietnam...
strikes again'".
Merger
After Jackson's acquisition of ATV Music Publishing, his record label,
CBSCBS Broadcasting Inc. is a major US commercial broadcasting television network, which started as a radio network. The name is derived from the initials of the network's former name, Columbia Broadcasting System. The network is sometimes referred to as the "Eye Network" in reference to the shape of...
, were negotiating the sale of their record division in an unrelated deal. Following hurriedly arranged meetings and disagreements over the selling price, a deal was sealed by Jackson during a concert in
Tokyo, ; officially , is one of the 47 prefectures of Japan. Tokyo is the capital of Japan, the center of the Greater Tokyo Area, and the largest metropolitan area of Japan. It is the seat of the Japanese government and the Imperial Palace, and the home of the Japanese Imperial Family...
. Upon seeing the success of this sale, Japanese corporation
Sony, commonly referred to as Sony, is a Japanese multinational conglomerate corporation headquartered in Minato, Tokyo, Japan and the world's fifth largest media conglomerate measured by revenues....
sought to break away from its core business of hardware manufacturing and diversify into music, films and games. Looking for further opportunities, the company aimed to expand its music publishing interests. The Japanese corporation offered Jackson $90 million for 50% of ATV Music Publishing in 1995. Jackson gladly accepted; he had essentially acquired half ownership of the Beatles' songs for a large profit. Jackson's own songs were not included in the deal. Having been merged, the company was renamed Sony/ATV Music Publishing and became the second largest music publisher in the world. Michael P. Schulhof, President and CEO of Sony, welcomed the merger and praised Jackson for his efforts in the venture. "Michael Jackson is not only the most successful entertainer in history; he is also an astute businessman. Michael understands the importance of copyrights and the role they play in the introduction to new technologies." He added that Jackson recognises Sony's "leadership in developing and realizing new technologies that serve to expand the creative horizon of artists such as himself". Administrative expertise was provided by Sony, who installed Paul Russell as chairman. Jackson was a company director and attended board meetings regularly. As each party in the arrangement held the power of veto, both sides would have to agree on a decision before it could be made. If neither party agreed on a decisions, they would not be implemented.
Recent history
| Timeline of Sony/ATV Music Publishing |
| 1955 |
Lew Grade founds Associated Television (ATV). |
| 1957 |
ATV acquires Pye Records as a wholly owned subsidiary. |
| 1957 |
ATV Music Publishing is created to exploit the songs owned by ATV. |
| 1968 |
ATV Music and Lew Grade acquire the rights to the Lennon/McCartney song catalogue, Northern Songs. |
| 1985 |
ATV Music Publishing and Pye Records are put up for sale. They are bought Robert Holmes à Court. |
| 1985 |
ATV Music Publishing and its assets, Pye Records and Northern Songs, are again put up for sale. Singer Michael Jackson acquires them for $47.5 million. |
| 1995 |
Jackson merges ATV Music Publishing with Sony. He earns $90 million in the venture. |
| May 2001 |
Jackson declares that The Beatles' songs "will never be for sale". |
| November 2001 |
Sony/ATV Music Publishing acquires Tony Martin's Baby Mae Music catalogue of 600 songs. |
| July 2002 |
Sony/ATV Music Publishing buys country music publisher Acuff-Rose for $157 million. The venture includes publishing rights to 55,000 songs. |
| 2007 |
Sony/ATV Music Publishing acquires Famous Music, a music publishing business with song catalogue of more than 125,000 songs. |
In May 2001, Jackson denied rumours that he was planning to sell the Beatles' song catalogue. Rumours had circulated that the singer was to sell them in order to finance the upkeep of
Neverland RanchNeverland Valley Ranch is a developed property in Santa Barbara County, California, most famous for being a home of American entertainer Michael Jackson from 1988 to 2005. Jackson named the property after Neverland, the fantasy island in the story of Peter Pan, a boy who never grows up...
and to cover legal bill expenses. The singer announced in a statement, "I want to clarify a silly rumour - The Beatles catalogue is not for sale, has not been for sale and will never be for sale. Sony/ATV Music Publishing continued to acquire song catalogues in the 21st century. In November 2001, the company signed country singer Tony Martin to an exclusive songwriting and co-publishing deal. Through the deal, they acquired Martin's Baby Mae Music catalog of 600 songs, which includes
Joe DiffieJoe Logan Diffie is an American country music singer known for his ballads and novelty songs. Between 1990 and 2004, Diffie charted 35 cuts on the Billboard Hot Country Songs chart, including five number one singles: his debut release "Home", "If the Devil Danced ", "Third Rock from the Sun",...
's "
Third Rock from the SunThird Rock from the Sun is the fourth studio album by American country music artist Joe Diffie. The album's first five tracks were all released as singles, and all charted on the Billboard Hot Country Singles & Tracks charts...
" and
Jeff CarsonJeffrey Lee Herndon , known professionally as Jeff Carson, is an American country music artist. Originally a session musician in Branson, Missouri and later a demo singer, he was signed to Curb Records in 1995, releasing his self-titled debut album that year, followed by Butterfly Kisses in 1998...
's "
Not on Your Love"Not On Your Love" is a song written by Tony Martin, Troy Martin, and Reese Wilson, and recorded by American country music artist Jeff Carson. Released as the second single from his self-titled debut album, it represents Carson's only Number One single on the Hot Country Singles & Tracks chart.The...
". In July 2002, Sony/ATV Music Publishing bought veteran country music publisher Acuff-Rose for $157 million. The venture included music publishing rights to 55,000 country music songs, including the music of Hank Williams,
The Everly BrothersThe Everly Brothers are country-influenced rock and roll performers, known for steel-string guitar playing and close harmony singing...
and
Roy OrbisonRoy Kelton Orbison was an American singer-songwriter, well known for his distinctive, powerful voice, complex compositions, and dark emotional ballads. Orbison grew up in Texas and began singing in a rockabilly/country & western band in high school until he was signed by Sun Records in Memphis...
as well as the
master recordingA multitrack recording master tape, disk or computer files on which productions are developed for later mixing, is known as the multi-track master, while the tape, disk or computer files holding a mix is called a mixed master.It is standard practice to make a copy of a master recording, known as...
s of the defunct label
Hickory RecordsHickory Records is a United States record label founded by Acuff-Rose Music in 1954 which operated the label up to 1979. Present owner Sony/ATV Music Publishing revived the label in 2007. Originally based in Nashville, functioning as an independent label throughout its history, it has had several...
. Sony/ATV revived Hickory Records as the in-house
record labelIn the music industry, a record label is a brand and a trademark associated with the marketing of music recordings and music videos. Most commonly, a record label is the company that manages such brands and trademarks, coordinates the production, manufacture, distribution, marketing and promotion,...
imprint in 2007, with distribution handled by Sony Music's
RED DistributionRED - An Artist Development Company is a Sony Music Entertainment-owned sales and marketing division that handles releases for over sixty independent record labels....
. Sony/ATV also owns the masters of
Dial RecordsA second Dial Records label was a New Orleans soul label formed by Nashville-based song publisher/plugger/producer Buddy Killen in 1964.This label was formed specifically so Killen could record perhaps his best-known discovery, soul singer Joe Tex...
,
Four Star Records4 Star Records is the name of a record label that recorded many well-known country music acts in the 1950s. The label, founded after World War II, was home to singers such as Hank Locklin, Maddox Brothers and Rose, Rose Maddox, Webb Pierce and T. Texas Tyler...
and
Challenge RecordsChallenge Records was founded in Los Angeles in 1957 by cowboy singer Gene Autry and former Columbia Records A & R representative Joe Johnson. Autry's involvement with the label was short lived as he sold his interest to the remaining partners in October 1958. The label's first success came with...
.
In 2006, Sony obtained an option to buy half of Jackson's stake in the company at any time for a fixed price of $250 million. Sony has not exercised the option.
Digital
sheet musicSheet music is a hand-written or printed form of music notation that uses modern musical symbols; like its analogs—books, pamphlets, etc.—the medium of sheet music typically is paper , although the access to musical notation in recent years includes also presentation on computer screens...
provider Musicnotes.com announced in June 2006 that they had signed a long-term distribution agreement with Sony/ATV Music Publishing. Musicnotes.com would produce and sell digital sheet music and
guitarThe guitar is a plucked string instrument, usually played with fingers or a pick. The guitar consists of a body with a rigid neck to which the strings, generally six in number, are attached. Guitars are traditionally constructed of various woods and strung with animal gut or, more recently, with...
tablatureTablature is a form of musical notation indicating instrument fingering rather than musical pitches....
for songs from Sony/ATV's extensive catalog. "As a music publisher, we are always looking for new and innovative ways to promote our songs and songwriters", Sony/ATV chairman and chief executive David Hockman announced in a statement. Another company acquisition was made in 2007, when
Famous MusicFamous Music was the worldwide music publishing division of Paramount Pictures, a division of Viacom since 1994. Its copyright holdings span several decades and includes music from such Academy Award-winning motion pictures as The Godfather and Forrest Gump...
, a music publishing business with song catalogue of more than 125,000 songs including "
Moon River"Moon River" is a song composed by Johnny Mercer and Henry Mancini in 1961, for whom it won that year's Academy Award for Best Original Song. It was originally sung in the movie Breakfast at Tiffany's by Audrey Hepburn, although it has been covered by many other artists...
" and "
Footloose"Footloose" is the title of a song co-written and recorded by American singer-songwriter Kenny Loggins. It was released in January 1984 as the first of two single by Loggins from the 1984 film of the same name. The song spent three weeks at number one, March 31—April 14, 1984 on the U.S. Billboard...
", was sold to Sony/ATV Music Publishing. The deal, sought by
ViacomViacom Inc. , short for "Video & Audio Communications", is an American media conglomerate with interests primarily in, but not limited to, cinema and cable television...
, included the assumption of around $30 million of debt. The company purchased the business for $370 million. The song catalogue also includes the hits of
EminemMarshall Bruce Mathers III , better known by his stage name Eminem or his alter ego Slim Shady, is an American rapper, record producer, songwriter and actor. Eminem's popularity brought his group project, D12, to mainstream recognition...
,
AkonAliaune Damala Badara Thiam, better known as simply Akon , is a Senegalese American R&B recording artist and songwriter.According to Forbes, Akon grossed $21 million in 2010, $20 million in 2009 and $12 million in 2008. He rose to prominence in 2004 following the release of "Locked Up", the first...
,
Linda PerryLinda Perry is an American rock musician, songwriter, and record producer. Once best known as the lead singer and primary songwriter of 4 Non Blondes, Perry has founded two record labels and has become a major songwriter and producer...
,
BjorkBjörk Guðmundsdóttir , known as Björk , is an Icelandic singer-songwriter. Her eclectic musical style has achieved popular acknowledgement and popularity within many musical genres, such as rock, jazz, electronic dance music, classical and folk...
,
ShakiraShakira Isabel Mebarak Ripoll , known professionally as Shakira , is a Colombian singer who emerged in the music scene of Colombia and Latin America in the early 1990s...
and
BeckBeck Hansen is an American musician, singer-songwriter and multi-instrumentalist, known by the stage name Beck...
. With this acquisition, Sony/ATV acquired the rights to publish music from films released by Viacom's
Paramount PicturesParamount Pictures Corporation is an American film production and distribution company, located at 5555 Melrose Avenue in Hollywood. Founded in 1912 and currently owned by media conglomerate Viacom, it is America's oldest existing film studio; it is also the last major film studio still...
subsidiary, which had founded Famous Music in 1928 to publish music from its films (this also included films released by
DreamWorksDreamWorks Pictures, also known as DreamWorks, LLC, DreamWorks SKG, DreamWorks II Distribution Co., LLC, DreamWorks Studios or DW Studios, LLC, is an American film studio which develops, produces, and distributes films, video games and television programming...
, which Viacom acquired in 2006).
Following
Jackson's deathOn June 25, 2009, American singer Michael Jackson died of acute propofol intoxication after he suffered a respiratory arrest at his home in the Holmby Hills neighborhood in Los Angeles. His personal physician, Conrad Murray, said he found Jackson in his room, not breathing, but with a faint pulse,...
in June 2009, it was revealed that Sony/ATV Music Publishing would keep control of the Beatles' songs. Upon his death, Jackson's entertainment attorney, Joel Katz, commented on the singer's work as a businessman. "Michael Jackson was a perfectionist and his business affairs are worldwide. Many of them are quite ongoing and will be dealt with appropriately." Ivan Thornton, a private-wealth adviser who worked with Jackson and his family, also commended the business side of the musician. "His business mind was fascinating. We’d go to meetings with bankers and Wall Street people and once I explained the language to him, he totally got it. There was no formal education there, but his natural knack was off the charts."
Value
The value of Sony/ATV Music Publishing has varied in reports. In 2002,
Forbes magazine estimated Jackson's 50% stake in the company, along with other music publishing ventures, to be worth $450 million. The organisation was valued at $700 million in 2003. Industry experts valued the catalogue at between $600 million and $1 billion in 2004, based on the sales of rival catalogues. Charles Koppelman, a veteran music industry executive, stated that $1 billion was more reflective of Sony/ATV Music Publishing's worth. "Buyers would be lining up around the block if it were ever put up for sale", he said. "And I'd be in the front of the line." The value of the company was further estimated by Ryan Schinman, chief of Platinum Rye, to be $1.5 billion
In 2005, Jackson's defense attorney,
Thomas MesereauThomas Arthur Mesereau, Jr. is an American attorney best known for defending Michael Jackson in his 2005 child molestation trial.-The Robert Blake murder trial:...
, revealed that the song catalogue had been valued at between $4 billion and $5 billion. The company's song catalogue is believed to generate up to $80 million a year; The Beatles' hits alone bring in $30 million to $45 million a year. Jackson's other publishing firm, Mijac, which publishes songs written by Jackson himself and which used to be administered by competitor
Warner/Chappell MusicWarner/Chappell Music, Inc. is an American music publishing company, and a division of the Warner Music Group. The company traces its origins back to 1811 and the founding of Chappell & Company, a music publishing company and instrument shop on London’s Bond Street that, in 1929, began a rapid...
, is valued to be worth at least $75 million. Since 2011 Mijac is administered by Sony/ATV.
External links