Representatives of Michael Jackson’s estate are talking to Universal Music Group and others about submitting a competing bid — just as Sony Music is close to inking a deal for the King of Pop’s unreleased material, The Post has learned.
Sony Music and lawyers John Branca and John McClain — the court-appointed reps for Jackson’s estate — are in advanced talks to extend Jackson’s deal with the label to cover any recordings made after 2004.
Under current terms, the label controls the rights to recordings made prior to 2004 until they revert to the estate in a few years. However, about 70 unreleased songs created after 2004 are up for grabs. Jackson died June 25.
Sources said the estate is seeking a large upfront payment and a higher royalty rate in any new deal, and that Sony is offering one or the other but not both.
“We’re trying to figure out the terms,” said a source involved in the talks.
Sources said the estate would like to set a new deal while interest in Jackson is still high, with the goal of getting the first album of new material in stores by early next year.
As Jackson’s incumbent record label, one source said of the deal with Sony, “It’s theirs to lose.”
A second person involved in the talks with Sony said there was at least one other bidder for the post-2004 recordings. This person declined to name the company and characterized its interest as informal. Two other sources close to the situation pegged Universal as the other bidder.
“Nobody talks to EMI anymore, and Warner Music is weak internationally,” said one source. “Universal and Sony have the two best worldwide distribution systems, so Branca is probably trying to play them against each other to get the highest bid.”
A Universal rep denied the label was interested. Jackson’s estate and Sony each declined to comment.
Absent a competing bid, leverage in the talks could swing to either the estate or Sony depending on the performance of this week’s release of the concert film “This Is It” and its accompanying soundtrack.