Another Beatles related story, kind of. Reports suggest that Michael Jackson may lose his stake in the Sony/ATV publishing company, most famous for owning the Beatles catalogue, by the end of May next year.
Those reports, via Fox News' Roger Friedman, follow the revelation of various aspects of the previously reported agreements made between Jackson and his business partner Sony Corp last year. As previously reported, Sony stepped in to aid Jackson as he faced potentially crippling debt repayments that stemmed from an original overdraft with the Bank Of America and a refinancing deal that had been done with a finance firm called Fortress Investments.
The deal with Sony enabled Jackson to put off the financial meltdown many commentators had predicted but, according to Friedman, it was a deal which had more short term gain than long term benefits. He says that the deal gives Sony the option to buy out Jackson from the Sony/ATV business next Spring, which would mean the singer would no longer have an interest in the profitable publishing sector, and in particular the valuable Beatles catalogue.
While Jackson would be paid for his share should Sony take up that option, Friedman reckons Sony could deduct $250 million from the estimated $600 million Jackson's share would be worth for costs they have incurred in running the joint venture to date. As Jackson still has a reported $300 million debt with Fortress, currently secured on his Sony/ATV equity, Jackson would gain just $50 million through the forced sale of his publishing assets, which is a phenomenal amount of money to anyone but Michael Jackson, who'd probably spend it in one evening's shopping.
All of which means that Jacko could really do with striking one of those rumoured lucrative Las Vegas residencies, and getting some decent new music out, in the next twelve months if possible.