A Recording Coup for Michael’s Little Sister : Pop music: Janet Jackson signs the largest recording contract in history--an estimated $32 million. Michael Jackson is next; his deal may be worth $60 million.

Janet Jackson has signed the largest recording contract in history--an estimated $32 million, three-album deal with Virgin Records.

The agreement, announced Monday, ends one of the most intense record industry bidding wars in years, but the dollar amount is expected to be eclipsed soon by brother Michael Jackson’s renegotiated Sony contract, worth an expected $60 million.

The Virgin agreement--which begins with Janet Jackson’s next studio album, presumably due next year and covering supporting videos--won out over rival offers from A&M;, Atlantic and Capitol.

“I am very excited to be part of the Virgin family,” Jackson said in a statement released Monday by her Los Angeles publicity firm, Levine-Schneider. “I am confident that together we will break new ground.”

One reason the bidding was so heavy, various industry observers have noted, was that Jackson--at just 24--is still a relatively fresh face on the pop scene and that her dance-pop style is ideal for today’s pop/video climate.

Jeff Ayeroff, co-managing director of Virgin Records in the United States, said Monday that the reason the company pursued Jackson so strongly was because of her international potential.

“We’re trying to establish a roster that will make us competitive throughout the world,” he said. “We are a European-based company and the bulk of our revenues come from outside the United States. Janet is a world-class artist and we expect her growth to be enormous.”

Virgin Records Group Chairman Richard Branson was actively involved in the campaign to land Jackson.

Branson, a high-profile entrepreneur who holds several hot-air balloon records including a recent flight from Japan to Alaska, even took Jackson on a demonstration flight near his country home in England last September.

“A Rembrandt rarely becomes available,” Branson said in the Levine/Schneider press release Monday. “When it does, there are many people who are determined to get it. I was determined.”

Sources close to the Sony discussions confirmed Monday that the new Michael Jackson contract--anticipated to be signed by the end of the month--will be for more than $60 million.

However, specific terms of the Sony contract--including the number of albums involved--weren’t available so it is difficult at this point to determine how much Michael is guaranteed per album versus Janet.

The timing of the two Jackson contracts may not be accidental, according to several industry insiders. Michael’s contract has been a major point of interest in the record industry since late last summer.

In fact, some observers feel that Jackson may have held back from finalizing his deal until his sister’s contract was concluded, giving her a chance to briefly hold the record for biggest contract before stepping back and reclaiming it.

It also, they added, guaranteed that he would end up with the highest ultimate figure.

Janet Jackson’s last two A&M; albums sold more than 14 million copies in the U.S. alone. “Rhythm Nation 1814,” released late in 1989, contained five Top 5 singles, four of which rose to No. 1 on the pop charts.

Another factor cited by parties close to the negotiations was that Jackson was a worldwide “free agent,” which meant prospective buyers didn’t have to pay off old contract obligations.

Her A&M; contract expired with the release of “Rhythm Nation 1814.” A&M;, however, still has the rights to a “greatest hits” package that is expected to be released later this year.

Though Virgin has long been a force in the European pop market, its U.S. operation was formally launched in 1987 and has yet to establish a presence or sales share in this country to equal the rival bidders.

However, the U.S. operation has made impressive strides over the last three years by signing and developing widely admired promotion campaigns for such artists as Paula Abdul, Keith Richards, Ziggy Marley, Lenny Kravitz and Soul II Soul.