The 1985 purchase of The Beatles’ catalog by Michael Jackson is one of the most controversial episodes in music history—a tale of ambition, friendship, and business acumen that forever changed the music publishing landscape. This acquisition didn’t just bolster Jackson’s financial empire; it drove a wedge between him and Paul McCartney, one of the original songwriters and a close friend at the time.

A Friendship That Turned Sour

Jackson and McCartney’s friendship flourished in the early 1980s, fueled by their collaborations on hit tracks like “The Girl Is Mine” from Jackson’s Thriller album and “Say Say Say” from McCartney’s Pipes of Peace. During this period, McCartney, who had been acquiring music rights for years, offered Jackson a valuable lesson in the business side of music. McCartney explained the lucrative nature of owning publishing rights, noting how it allowed him to earn royalties whenever songs he owned were played or recorded.

Taking this advice to heart, Jackson expressed his admiration for McCartney’s business acumen, jokingly saying, “One day, I’ll own your songs.” At the time, McCartney likely dismissed it as playful banter, unaware of how prophetic Jackson’s words would become.

The High-Stakes Deal

In 1984, ATV Music, which held the rights to over 4,000 songs, including 251 Beatles tracks, was put up for sale. Jackson, who by then had become an astute businessman, saw this as an opportunity too good to pass up. Despite McCartney’s interest in regaining control of The Beatles’ catalog, he found the price too steep. Yoko Ono, representing John Lennon’s estate, also opted not to bid, reportedly preferring that Jackson own the catalog rather than a corporation.

Jackson, determined to secure this priceless asset, instructed his attorney, John Branca, to pursue the deal. After months of intense negotiations, Jackson emerged victorious with a final bid of $47.5 million, closing the deal on August 14, 1985. The purchase gave Jackson ownership of some of the most iconic songs in music history, such as “Hey Jude,” “Yesterday,” and “Let It Be.”

The Aftermath: A Broken Friendship

The deal marked the beginning of the end of Jackson and McCartney’s friendship. McCartney, who had hoped to reclaim his songs, felt deeply betrayed. In a 2001 interview, McCartney revealed, “He [Jackson] won’t even answer my letters, so we haven’t talked, and we don’t have that great a relationship.” Jackson, on the other hand, viewed the acquisition purely as a business move. In his 1988 autobiography Moonwalk, he wrote, “Paul and I had both learned the hard way about business, and the importance of publishing and royalties and the dignity of songwriting.” Jackson’s stance was clear: it was nothing personal, just business.

Jackson’s ownership led to the Beatles’ songs being used in commercials, something McCartney vehemently opposed. He felt that such commercialization diluted the songs’ artistic value, lamenting, “It kind of spoils it. Just takes the edge off it.” This commercialization was a stark departure from The Beatles’ original intention to keep their music pure and untainted by corporate interests, further deepening the rift between the two musicians.

A Legacy Worth Billions

Jackson’s acquisition of The Beatles’ catalog proved to be a brilliant investment. In 1995, he sold 50% of ATV to Sony for $95 million, creating Sony/ATV Music Publishing, which would become one of the largest music publishing companies in the world. The catalog’s value continued to rise, and after Jackson’s death in 2009, Sony eventually bought out Jackson’s estate’s remaining 50% stake for $750 million in 2016. By then, the catalog was estimated to be worth over $1 billion, underscoring the financial genius of Jackson’s original $47.5 million investment.

The Postscript: McCartney’s Long Quest

After Jackson’s death, rumors swirled that he might have left the Beatles’ songs to McCartney in his will. However, McCartney quickly dispelled these rumors, stating, “Some time ago, the media came up with the idea that Michael Jackson was going to leave his share in the Beatles’ songs to me in his will… [It] was completely made up.” Despite the rumors, it wasn’t until 2017 that McCartney finally reached a settlement with Sony/ATV over the rights to The Beatles’ catalog, using a provision in the US Copyright Act that allows songwriters to reclaim their rights after 35 years. The details of this settlement remain confidential, but it marked the end of a long and complex chapter in McCartney’s life.

The saga of Michael Jackson’s acquisition of The Beatles’ catalog is a powerful reminder of how business can strain even the closest of friendships. What began as a mutually beneficial collaboration between two of the most iconic figures in music history ended in bitterness and a fractured relationship. Jackson’s purchase remains a defining moment in the music industry, a deal that not only secured his financial future but also reshaped the dynamics of music publishing, leaving an indelible mark on both his and McCartney’s legacies.