Is Sony Really Trying to Sell Its Publishing Giant?

It appears that Sony Corp. has triggered a clause in its co-ownership agreement of publishing giant Sony/ATV, which it shares with the Michael Jackson estate, that allows for either party to initiate a buyout of the other, signaling that the beleaguered multinational is looking to either sell its half of the Sony/ATV joint-venture ownership to the Michael Jackson estate or buy Jackson out. The reasons for the trigger remain mysterious, though a problematic relationship between the partners is an oft-cited rumor. Whatever the outcome, the finish line on any deal remains far in the distance. The news was first reported by the Wall Street Journal's Hannah Karp.

Sony Corp. (SON.L, SNE) is moving closer to selling off its half of Sony/ATV Music Publishing, after recently triggering a clause in its contract with its co-owner, the Michael Jackson estate, that allows one party to buy out the other, the Wall Street Journal reported citing people familiar with the matter.

Sony/ATV is co-owned by Sony and the estate of the late pop star. Sony and Jackson have jointly owned the company since 1995, each with a 50% stake.

Music industry veterans reportedly estimateSony/ATV's value at around $2 billion. Sony hasn't put a price tag on its share yet.

Lenders were notified when Sony triggered the exit clause last month. There is no guarantee the process will result in Sony selling its half.

Sony/ATV's structure grants both partners the right to counter any offer to buy out the other side, as well as to bid for the half each doesn't own.