Michael Jackson Estate’s $600 million catalog sale to Sony Music is upheld by a California court

Sony Music is permitted to acquire half of Michael Jackson’s publishing and recorded recordings catalog, despite the objections of his mother.

The California Appeal Court’s ultimate ruling has permitted Michael Jackson’s estate to proceed with the $600 million sale of his catalog to Sony Music, despite the objections of his mother, who sought to obstruct the agreement.

Katherine Jackson claimed that the transaction “violated Michael’s wishes.” However, an appeals court has determined that the star’s will granted his executors “broad powers” to negotiate offers.

One month after the Court of Appeal issued a tentative ruling against Katherine Jackson, the court has reached a definitive conclusion on Wednesday in favor of the estate’s executors. This decision confirms that John Branca and John McClain did not violate the terms of Michael’s will when they signed the massive deal with Sony.

The court stated, “The executors were granted extensive powers of sale by the will, with no exception made for the specific assets in question.” Therefore, the lower judge did not commit an error in determining that Michael’s intention was to permit the executors to sell any estate assets, including those at issue in the proposed transaction.

The court not only evaluated the agreement’s merits but also denied Katherine’s appeal on the grounds that she had waived her right to present her arguments in a subordinate probate court.

Katherine has the option to appeal the ruling to the California Supreme Court, although the likelihood of her success is low.

Sony Music and the Jackson estate have achieved an agreement to purchase half of the singer’s publishing and recorded master’s catalog for over $600 million, as previously reported.

The executors of the Jackson estate pursued approval for the agreement with Judge Mitchell Beckloff 15 years after his 2009 passing as a result of the lengthy probate court proceedings. Katherine expressed reservations, such as the possibility that the transaction “violated Michael’s wishes” and that the catalog’s value could potentially increase over time if it were retained.

Beckloff dismissed those objections in April 2023 and permitted the transaction to proceed. Katherine then filed an appeal, which resulted in the recent ruling on Wednesday.

The court rejected a number of arguments from Katherine in the new decision, including her assertion that the sale would contravene inheritance rules by preventing the transfer of all of Michael’s assets to his successors. The court cited Michael’s will, which provided Branca and McClain with “full power and authority” to consummate such transactions while managing the estate.

The court underscored that the proposed transaction is not a gift or distribution of estate assets, but rather an asset transfer that results in a substantial monetary payment and interest in a joint venture for the estate.

The estate’s value will not be diminished nor will the executors’ future ability to transfer the estate’s assets to the trust be impaired by the proposed transaction, which will result in the exchange of assets for cash and other valuable rights.

The divisions among Jackson’s heirs have been revealed by the disputes surrounding the Sony agreement. Blanket, Jackson’s son, petitioned the judge in March to prevent his grandmother from employing estate funds to oppose the agreement. The probate judge’s decision to proceed with the transaction was ultimately accepted by Blanket and Jackson’s other children, despite their initial opposition.

The estate responded to Katherine’s attorneys’ assertions that she required estate funds to finance her legal proceedings later that week by asserting that she had received over $55 million since the singer’s passing. The executors of the estate contended that “nearly no request of Mrs. Jackson for her care or maintenance has been declined,” which included over $33 million in cash.

The estate refuted Katherine’s attorneys’ assertions that she needed estate funds for her legal battle by emphasizing that she had received more than $55 million since Michael’s passing. This occurred in the same week. The executors noted that “virtually no request of Mrs. Jackson for her care and maintenance has been declined,” with over $33 million in cash provided.