Posted on 04/13/2006 2:54:19 AM PDT by abb
Michael Jackson, the debt-laden pop star, could begin to lose his grip on his most prized asset -- his stake in the lucrative music-publishing catalog that includes 251 Beatles songs -- under the terms of a proposed $325 million debt refinancing, according to people familiar with the matter.
The performer, whose star has fallen in recent years, is expected to announce as early as today that he has refinanced loan agreements originally valued at a total of about $270 million with the New York hedge fund Fortress Investment Group LLC, people familiar with the matter say. As part of his new deal, the singer will probably be forced to sell half of his 50% stake in Sony/ATV Music Publishing LLC, which owns and administers copyrights to thousands of songs, to partner Sony Corp. sometime within the next year. Mr. Jackson is expected to use the proceeds to pay back a significant chunk of his debt to Fortress. [Michael Jackson]
The deal, which wasn't signed as of yesterday, could still fall apart, these people say. But if finalized, it would be a coup for Sony, where music executives have long hoped to buy out Mr. Jackson's interests in Sony/ATV and own the catalog outright. Mr. Jackson bought the catalog, including the big swath of Beatles tunes, 21 years ago at a price far below its current $1 billion valuation. To this day, it generates revenue for Sony/ATV every time one of its songs is played on the radio.
The entertainer's Los Angeles financial adviser, Gaynell Lenoir, described the pending deal as a positive development for the singer. "He's seriously looking at his business affairs, and we're proud of him, really," she said in an interview. "He is vibrant, [and] he is going to resume his career."
(Excerpt) Read more at online.wsj.com ...
Oh, how cute. De widdle man wooks at his business affaiws, isn't he precious?
1. He's an idiot
2. He's a child molestor (twinkies cost cash)
3. SONY ripped him off.
SONY knew that he was a spender and I guarantee they encourage the continuing re-financing. Those Beatles songs sure are a money maker LOL. I never thought I'd be so happy for SONY.
Now give them all back to Paul.
1. He's an idiot
2. He's a child molestor (twinkies cost cash)
3. SONY ripped him off.
SONY knew that he was a spender and I guarantee they encourage the continuing re-financing. Those Beatles songs sure are a money maker LOL. I never thought I'd be so happy for SONY.
Now give them all back to Paul.
LoL, i agree.
L
"I'm a broke man" (Tune: "Taxman" by the Beatles) MIDI HERE
I'll tell you 'bout my deal with Sony (broke, man)
It's the best thing in the world for me, (broke, man)
'cause I'm a broke man
Yeah, I'm real broke, man.
More to come...
His last album wasn't that bad, but those "silly love songs" ouch.
I seriously don't think SONY will ever give up any of the songs. Once they take them all from "he who shall not be named by boys under 12".
It's funny that my 7 year old and his playmates when very angry at someone will sputter out Michael Jackson as an insult. What a wreck.
It's precisely what happens when white trash suddenly comes into money.
The NYT has a story on this, too..
Michael Jackson Bailout Said to Be Close
By JEFF LEEDS and ANDREW ROSS SORKIN
Published: April 13, 2006
Michael Jackson, the onetime pop-music king who has endured a lengthy slide toward insolvency, is close to a deal that would keep him from bankruptcy by refinancing hundreds of millions of dollars in loans, people briefed on the plan said last night.
Skip to next paragraph
As part of the transaction, he will also agree at some point in the future to give up a part of a prized asset — a song catalog that includes Beatles' hits — to the Sony Corporation, people briefed on the plan said.
Mr. Jackson, who spent years racking up debt to underwrite his lifestyle even as his music career faded, has appeared to teeter on the brink of ruin several times in recent years. Last month, he all but closed his sprawling California ranch called Neverland, a move that came after the California authorities threatened to sue over unpaid wages to ranch employees.
Mr. Jackson used his stake in the song catalog as part of the collateral for about $270 million in loans from Bank of America. The bank sold the loans last year to Fortress Investment Group, a New York-based investment company that buys distressed debt. The entire catalog, of which Mr. Jackson owns 50 percent, has been valued around $1 billion, the people briefed said.
As part of the new agreement, Fortress has agreed to provide a new $300 million loan and reduce the interest payments Mr. Jackson must make.
snip
http://www.nytimes.com/2006/04/13/business/media/13music.html
Oh, he's doomed now. Maybe he can write a theme song for NAMBLA and make a few bucks.
Or anyone, except Yoko.
thats a bit understated
Happens a lot.
There's a derogatory expression for it that shall not be mentioned here. Suffice it to say, MJ has reinforced an unfortunate stereotype.
"_ _ _ _ _ _ rich" ?
No matter what you may think of Paul McCartney, you sound like an idiot too. It would be nice to see the fruits of your labor go into my band's bank account for the next 10 years...
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