The Business Genius of Michael Jackson: How He Turned a $47.5 Million Investment into a Billion-Dollar Music Empire
In the 1980s, Michael Jackson and Paul McCartney collaborated on several songs, including "The Girl Is Mine" and "Say Say Say." McCartney advised Jackson to invest in music publishing, a lesson McCartney learned the hard way after losing control of Northern Songs in the late 1960s. McCartney's advice led Jackson to understand the value of owning publishing rights, as they generate income whenever a copyrighted song is used in various media.
In the mid-1980s, ATV Music, which owned the publishing rights to 251 Beatles songs and many other tracks, was put up for sale. McCartney did not bid, but Jackson purchased ATV Music for $47.5 million in 1985. This move was a smart business decision but strained Jackson's friendship with McCartney, who felt betrayed when Jackson used Beatles songs in commercials.
In 1995, Jackson merged ATV with Sony's publishing unit to create Sony/ATV Music Publishing, retaining a 50% stake. After Jackson's death, his estate sold the remaining 50% stake to Sony for around $750 million. Jackson's initial $47.5 million investment in ATV Music generated over $1 billion in total returns over three decades, making it a highly successful business deal in music history.
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