Northern Songs
On the 22nd of February 1963, Dick James called Brian Epstein to suggest a new partnership. The meeting took place at James' office in London. Epstein arrived with an acetate of the song Please Please Me. He needed proof that James could actually publish music effectively. James picked up his phone and dialed Philip Jones immediately. Jones produced the television show Thank Your Lucky Stars. James played the recording over the line and declared it a guaranteed hit. Jones agreed to book the song on his program within minutes. Epstein felt impressed by this speed and trustworthiness. He decided to work with James right away. They formed Northern Songs Ltd later that month. John Lennon and Paul McCartney joined as partners. Each received a twenty percent share of the company. Epstein held ten percent while James and Charles Silver kept fifty percent. George Martin declined an offer for shares due to conflicts with EMI. The company published songs written by all four Beatles. Harrison and Starr also had their early works handled here. Profits flowed into Lenmac Enterprises owned by the songwriters. NEMS stores held a smaller stake in the profits.
During 1965, the founders sought to reduce their income tax burden. They made Northern Songs a public company on the London Stock Exchange. One million two hundred fifty thousand shares were traded. Each share cost seventeen pence but was offered at sixty-six pence. Financial institutions scoffed at the high price tag. Yet the application lists closed after only sixty seconds. Investors oversubscribed the offering massively. Lennon and McCartney each owned fifteen percent worth £195,200. James and Silver controlled thirty-seven point five percent. Harrison and Starr shared just one point six percent. The remaining shares went to various financial institutions. Lennon and McCartney renewed three-year contracts binding them until 1973. Harrison signed his own contract for three years starting that year. James took out life insurance policies worth £500,000 on both songwriters. By summer 1966, eighty-eight Lennon-McCartney songs had been recorded. Nearly three thousand versions existed across different artists. This structure allowed the Beatles to earn more money long-term while managing taxes efficiently.
Brian Epstein died on the 27th of August 1967 leaving the group without its manager. Lennon and McCartney tried to renegotiate their publishing deal with Dick James. Relations grew cold during a meeting filmed at Apple Records in 1968. In March 1969, James and Charles Silver sold their shares to Associated Television. They gave no warning to the songwriters. Lennon learned of the sale from a morning newspaper while honeymooning with Yoko Ono. He called McCartney immediately to discuss options. ATV offered £2.3 million for their shares but they refused. A bidding war ensued between the two sides. Lew Grade provided immense financial power to ATV. His resources ensured Northern Songs passed into ATV control. Allen Klein attempted to arrange a buyout through Apple Corps. Attorney John Eastman stopped the deal by sending a letter. Klein lacked formal authorization despite being de facto manager. Investors lobbied by both sides eventually sided with ATV. Lennon expressed disdain for businessmen during negotiations. He told them he was sick of men in suits sitting on fat arses. This comment pushed investors toward ATV's side. Lennon and McCartney sold their stock in October 1969 for £3.5 million. Starr kept his small share while Harrison had already sold his.
During sessions for Say Say Say McCartney showed Michael Jackson a thick booklet. The document listed all publishing rights owned by McCartney. He earned $40 million annually from songs written by others. Jackson asked how acquiring such assets worked. He stated clearly that he would get the Beatles' songs. In June 1985 Holmes à Court put ATV Music up for sale. The Entertainment Co made a tentative agreement worth £30.5 million. Jackson countered with an offer of £24.4 million. His bid won because due diligence was complete beforehand. The deal closed on the 10th of August 1985. Holmes à Court added more assets including a scholarship fund. Jackson agreed to appear on Channel Seven Perth Telethon. A photograph later showed Jackson and McCartney together. Rumors suggested they fell out over ownership disputes. McCartney later said it was no big bust-up. They simply drifted apart after the purchase. Both Lennon's widow Yoko Ono and McCartney were notified but did not bid themselves. John Branca handled negotiations for Jackson against McCartney's attorney.
In 1995 Michael Jackson merged his catalogue with Sony Music Publishing. The new entity became Sony/ATV Music Publishing. Jackson retained half ownership in the joint venture. Northern Songs officially dissolved as a company that same year. An April 2006 proposal saw Jackson borrow £186,480,000. He reduced interest rates while giving Sony future buying options. This left Jackson with only twenty-five percent stake. Jackson agreed to refinancing though final details remained private. His estate sold remaining shares to Sony in 2016. The name reverted to Sony Music Publishing in February 2021. In 2017 McCartney reached a settlement regarding Beatles catalog control. It remained unclear how this affected copyright claims. Holmes à Court had previously excluded Penny Lane from sales. That song went to his daughter Catherine as her favorite track. The original Northern Songs structure ceased to exist entirely after these mergers.
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Common questions
When was Northern Songs founded and who were the original partners?
Northern Songs Ltd formed later that month after a meeting on the 22nd of February 1963. John Lennon and Paul McCartney joined as partners with each receiving a twenty percent share while Brian Epstein held ten percent.
How did Dick James prove his ability to publish music effectively in 1963?
Dick James dialed Philip Jones immediately during their first meeting and played an acetate of Please Please Me over the line. Jones agreed to book the song on his program Thank Your Lucky Stars within minutes which impressed Brian Epstein enough to form the partnership.
What happened to Northern Songs shares when it became public in 1965?
One million two hundred fifty thousand shares traded on the London Stock Exchange at seventeen pence but offered at sixty-six pence. Investors oversubscribed the offering massively closing application lists after only sixty seconds despite financial institutions scoffing at the price.
Why did Michael Jackson buy ATV Music in June 1985?
Michael Jackson won the bidding war for ATV Music by submitting an offer of £24.4 million because due diligence was complete beforehand. The deal closed on the 10th of August 1985 allowing him to acquire the Beatles' songs including those published by Northern Songs.
When did Northern Songs officially dissolve and what replaced it?
Northern Songs officially dissolved as a company in 1995 when Michael Jackson merged his catalogue with Sony Music Publishing. The new entity became Sony/ATV Music Publishing while Jackson retained half ownership in the joint venture before selling remaining shares to Sony in 2016.