Michael Jackson, Sony Acquire Famous Music; Includes Music From Eminem, Akon, Others
Published: Thursday - May 31, 2007
Words by Allen Starbury
Viacom
Photo: Viacom
Viacom Inc. announced Wednesday (May 30) that a deal is in the works that would sell its Famous Music publishing unit to Sony/ATV Music Publishing, which is owned in part by pop singer Michael Jackson.
According to
Reuters, the deal is reportedly worth in upwards of $370 million, and includes a catalog of music from artists such as Eminem and Shakira, as well as songs from movie soundtracks including "The Godfather" and "Mission: Impossible."
The company's current roster of songwriters include Akon, Shakira, Busta Rhymes, Eminem, Nappy Roots, Linda Perry, Fred Jerkins III, 7Aurelius and others.
"This is a milestone event for Sony/ATV Music Publishing," Michael Jackson said in a statement. "The diverse collection of songs in this catalogue range from timeless classics to contemporary hits, and I am pleased to add the acquisition of Famous Music to Sony/ATV."
As part of the deal, Sony/ATV will enter into the production music side of the business through the Famous Extreme division.
Sony/ATV's catalog already includes songs by The Beatles, Neil Diamond, Bob Dylan and Jimi Hendrix, making it the fourth-largest music publisher.
"We're in the hunt for great artists and people to build the team," said recently appointed Sony/ATV Chief Executive Martin Bandier in an interview with
Reuters.
"This deal announces that we're in the game. Our strategy is to become one of the more meaningful players in the publishing business," he added.
Publishing has become one of the most profitable parts of the music biz in recent years, as other parts -- such as actual album sales -- has been on the decline due to piracy.
Publishing is less vulnerable to piracy and retail, due to its revenue coming from the licensing of songs to television, advertising, radio and live performances.
Other major music companies such as Warner Music Group and Sony BMG Music Entertainment have expressed interest in also expanding their publishing catalog.
