It’s official: Sony/ATV not for sale

It’s official: Sony Corp has no plans to sell off Sony/ATV, the largest music publisher in the world. Its Chairman/CEO Martin Bandier told staff in an internal memo, “I have been advised by Sony Corp. that Sony/ATV is not for sale.”

He added, “I can well understand that given we have just had our best year ever both creatively and financially and without a doubt we are the world’s leading and best music publisher with more great things set to come over the next 12 months. Who wouldn’t want to own a company like that, including Sony Corporation?"

Last month Sony hackers leaked secrets emails between top level Sony Corp executives in October which had discussed whether to sell off the lucrative publishing arm. Among reasons tossed around were to reduce Sony Corp’s debt caused by its under-performing electronics division (last September, Sony Corp expected a loss of $2.1 billion for 2014), concern of the complex shareholding structure of Sony/ATV, and of its limited prospects for growth.

Last year its success continued with superstars as Taylor Swift, Eminem, Lady Gaga and Kanye West as well as newcomers Sam Smith, Meghan Trainor, Iggy Azalea and Charli XCX.

Sony/ATV was set up in 1995 as a joint venture between Sony Corp. and the estate of Michael Jackson. It controls three million works. It also has the highly lucrative rights to 250 Beatles songs (which Jackson’s estate bought in 1985 for $47.5 million) and the Motown catalogue for which EMI paid $132 million for half of the catalogue in 1997.

Sony also has a 30% stake in EMI Music Publishing, which it brought in 2012 for $2.2 billion alongside four investors, and which has 1.3 million songs.

Sony/ATV is worth about $2 billion, according to Forbes magazine. It is estimated to contribute to 14% of Sony’s music revenues. In America, estimates have Sony/ATV as the dominant 30% of the US$2.2 billion in revenue collected in that country a year by publishers.