Michael Jackson to Package Artists’ Royalties

Michael Jackson, the king of pop whose “Thriller” recording is the top-selling album of all time, plans to sell royalties generated by the Beatles, Bob Dylan and other musicians, sources said Thursday.

Jackson follows on the heels of another pop icon--David Bowie--who sold music royalties with the help of Wall Street bankers.

But unlike Bowie, who sold his own music catalog, Jackson will sell song royalties of other entertainers owned by a joint venture, Sony/ATV Music Publishing, that he formed three years ago with Sony Corp. of America.

Music royalties generated by that catalog would be pooled and used as collateral for a bond offering in excess of $100 million, according to sources familiar with the expected deal. “Sony and Jackson would do the deal together. It’s a multi-artist deal,” one source said.

Sony/ATV Music owns and administers Sony Music Publishing’s copyrights and Jackson’s publishing catalog. The singer’s own compositions are excluded from the joint venture.

The catalog of music owned by Jackson and Sony includes 251 Beatles songs such as “Yesterday,” “Hey Jude” and “Hard Day’s Night.” Other artists in the catalog include Oasis, Willie Nelson, Bob Dylan, Cyndi Lauper and Pearl Jam.

Sources said the so-called asset-backed transaction could come to market before the end of the year.

Bowie raised $55 million last year by selling asset-backed bonds, which similarly were created by pooling music royalties and using them to back the debt sold to investors.

This type of bond offering, taking income streams from royalties or expected ticket receipts, has become more popular in recent years as entertainment companies seek cheaper financing for their projects.

Jackson may have plans to use the proceeds for his own investments. “If such a deal is cut, it would be done to expand his own investment portfolio,” said Bob Jones, head of media relations for Jackson’s MJJ Productions.

While the impending deal has Wall Street rife with speculation, no specific offering details have been presented to investors, sources said.