Michael Jackson’s Takeover of an Iconic Music Catalog

By: Jordan Meadows, Staff Writer

Michael Jackson’s legacy is not just defined by his groundbreaking music, electrifying performances, and record-breaking albums, but also by his shrewd business understanding, particularly in music publishing. The story of how Jackson took control of some of the most iconic songs ever written is one of vision and rivalry.

Jackson’s and Paul McCartney’s professional relationship began in the early 1980s with their hit collaborations, “The Girl Is Mine” from Jackson’s “Thriller” in 1982 and “Say Say Say” in 1983. Their musical synergy was undeniable, and the pair became fast friends. However, beyond the studio, McCartney also taught Jackson a valuable lesson about the business of music.

In casual conversations, McCartney introduced Jackson to the lucrative world of music publishing, explaining how owning the rights to songs allowed artists to earn royalties whenever those songs were played, recorded, or used in other media. Jackson, inspired by this advice, began to seriously consider the idea of owning not just his own music but others’ as well.

In 1985, Jackson made a move that would forever alter the music business landscape: he purchased the catalog of ATV Music for $47.5 million, which included the rights to 250 Beatles songs. The catalog included some of the most iconic songs ever written, such as “Hey Jude,” “Yesterday,” “Let It Be,” and “Come Together.”

Jackson’s purchase was the culmination of months of negotiations, orchestrated by his attorney, John Branca. The acquisition allowed Jackson to collect royalties every time a Beatles song was played, recorded, or used commercially. It was a deal that would set him on a path to becoming one of the most influential figures in the entertainment business.

While Jackson’s business move was a stroke of genius, it also caused a rift in his relationship with McCartney. Jackson’s acquisition of the Beatles catalog was particularly awkward for McCartney, who had not been able to secure the rights himself.

The two would never collaborate again, and McCartney later admitted that he felt hurt by the way things unfolded. He had, after all, provided Jackson with advice that led to this monumental acquisition, only to find himself on the outside looking in.

In 1995, a decade after Jackson’s purchase of ATV, Sony entered the picture. Jackson sold 50% of the ATV catalog to Sony for $95 million, forming the joint venture known as Sony/ATV. This deal expanded the catalog’s reach, adding songs from artists like Bob Dylan, Marvin Gaye, and others, further increasing its value.

At its peak, the Sony/ATV catalog was worth well over $1 billion, and it became one of the most influential music publishing companies in the world.

After Jackson died in 2009, his estate continued to profit from his music catalog. In 2016, Sony Music bought the remaining 50% stake in Sony/ATV for $750 million, taking full control of the catalog. This deal included some of the most valuable music in history, including the Beatles catalog, along with songs from other legendary artists like Elvis, Little Richard, The Rolling Stones, Hank Williams, Bruce Springsteen, Cher, Eminem, and Lady Gaga. The catalog’s value was estimated to be around $1.5 billion, a staggering 3,000% increase from Jackson’s initial investment.

Despite Jackson’s successful business maneuver, McCartney wasn’t done with the Beatles catalog. In 2017, McCartney launched a legal battle under the U.S. Copyright Act of 1976, which allows songwriters to reclaim rights to their music 35 years after they transferred them to a publisher. McCartney was able to regain control over many of his Beatles songs, reaching a settlement with Sony/ATV after a lengthy legal process.

While McCartney didn’t recover the entire catalog, his victory marked an important moment in the music industry, and he remains one of the last major figures in music publishing to successfully reclaim rights to such a valuable collection of songs.

Despite making one of the most lucrative deals in music history, Jackson was known for his lavish spending habits. In 1987, he purchased the Neverland Ranch in California for $20 million, a property that would later be valued at as much as $90 million. However, Jackson poured an additional $35 million into extravagant improvements, including a go-kart track, a private zoo, and a railway with a full-sized antique steam locomotive. Reports also indicate that Jackson frequently spent tens of thousands of dollars daily on luxury hotels, fine art, and designer clothing. Unfortunately, his excessive spending far outweighed his financial acumen, and by the time of his death, he was nearly half a billion dollars in debt.

Today, the Jackson estate continues to see substantial returns from his music catalog, which includes not just the Beatles songs, but also Jackson’s own catalog of hits like “Billie Jean,” “Thriller,” and “Beat It.”

With the rise of streaming since his death, Jackson’s music has become even more valuable, as his songs continue to perform well on platforms like Spotify and Apple Music. In 2023, Jackson’s music saw a 38.3% increase in on-demand streams outside of the U.S. Jackson’s catalog remains one of the most valuable in the music industry, with some estimates placing its value at over $1.2 billion.

The Jackson estate has also diversified its income streams, with Jackson’s music appearing in commercials, movies, and Broadway shows. Jackson’s popularity has only grown since his death, with the increasing consumption of his music worldwide.

Michael Jackson’s purchase of the Beatles catalog was one of the most significant moves in the history of the music business. It not only elevated his financial status but also revolutionized the way artists and their estates would approach music publishing for years to come.