The Sale of Motown and Jobete

[mofreaktown]

Does anyone know what artistic control Berry Gordy retained with the sale of Motown to MCA/Polgram/Universal and Jobete to EMI. It seems like he retained some artistic control over both of them. From my perspective, it seemed he was able to create the Broadway show fairly easily when the artists, images and songs were controlled by others. I have no idea if it was simple or not but it seemed to be. I also have heard that he has put a halt to Marvin Gaye and Supremes/Diana Ross bios in the movies or the stage. Thanks.

[jobeterob]

I don't think anyone will ever know this because it would involve details contained in private contracts between the buyer and seller; Berry Gordy had no obligation to account to the public for any sale of his private assets.

The man was obviously gifted and intelligent and had the resources for sound legal and accounting representation.

It has been speculated many times that he probably negotiated the right to prevent usage of Jobete songs in plays and movies and he may have negotiated that for his life and perhaps the lives of his children; or maybe for a period of years from the date of the sale. It may have been a financial business decision. But it may have also been for the protection of important people in his life and those could include Rhonda and Diana Ross.

Good for Berry.

[ralpht]

Rob,
You're spot on. Very few of us know the legalities of the sale. I heard that Berry retained Jobette and MCA got the rest, which was basically a diminished roster. I joked with Harry Balk that Barry sold them a blue M for 63 mil. Barry is a very shrewd business man. He didn't build the Motown empire on a whim.

[theboyfromxtown]

There seems to be a right of "final say" by Mr Gordy in certain circumstances.

The Motown Museum can use Motown logos for example without infringement of copyrights - anyone else reproducing or copying label designs need to watch their back!!

[ralpht]

Good point, John. I never considered the Motown Museum's use of the logo for the purpose of profit.

[jobeterob]

That might be an example of something they allowed to be used in their agreement because the logo must be the property of Universal now.

The longer I stay on SD, the more I learn; the more I realize a lot of the "stories" are simply stories and the real truth has been a long time coming out and is not very sensational; it's just rational and makes sense. And it is not often contained in the gossipy, sensationalist novels that used maids and 10th cousins and brothers of former bandmates as uncredited sources.

[bradsupremes]

I believe Mr. Gordy has the grand rights [[aka final say) in what can and can't be used. The buck stops with him.

[bradsupremes]

I believe Mr. Gordy has the grand rights [[aka final say) in what can and can't be used. The buck stops with him.

[thomas96]

Good stuff.

[Hotspurman]

Rob,
You're spot on. Very few of us know the legalities of the sale. I heard that Berry retained Jobette and MCA got the rest, which was basically a diminished roster. I joked with Harry Balk that Barry sold them a blue M for 63 mil. Barry is a very shrewd business man. He didn't build the Motown empire on a whim.

My guess is that the value of the roster at the time of the sale was minimal and that what MCA was really paying for was the back catalogue. Bearing in mind CD’s were relatively new [[at least in consumer terms) and it made the deal appear to make some sense. I thought Berry undervalued the record company when he sold it for $63 million. Compare that with the price he got for Jobete - $321 million. Which is why Michael Jackson and Paul McCartney, for example, were so keen to buy any and all publishing catalogues they could get their hands on.

[mofreaktown]

I also thought that Berry Gordy undervalued Motown. I believe A&M sold around the same time for roughly $500 million. And I believe that sale didn't include A&M's publishing arm as well. Also, a few years later, wasn't Motown sold to Polygram for $300+ million. Anyway, hindsight is always 20/20.

[jobeterob]

I also thought the price was low.

But the price for Jobete was sweet particularly because it appears Berry sold it while retaining "significant rights".

[ralpht]

Like I said Rob...he's very shrewd.

[dvus7]

I also thought that Berry Gordy undervalued Motown. I believe A&M sold around the same time for roughly $500 million. And I believe that sale didn't include A&M's publishing arm as well. Also, a few years later, wasn't Motown sold to Polygram for $300+ million. Anyway, hindsight is always 20/20.

I totally AGREE!!! IRVING AZOFF!!!

[theboyfromxtown]

My guess is that the value of the roster at the time of the sale was minimal and that what MCA was really paying for was the back catalogue. Bearing in mind CD’s were relatively new [[at least in consumer terms) and it made the deal appear to make some sense. I thought Berry undervalued the record company when he sold it for $63 million. Compare that with the price he got for Jobete - $321 million. Which is why Michael Jackson and Paul McCartney, for example, were so keen to buy any and all publishing catalogues they could get their hands on.

I expected MCA to explore the back catalogue. Do you think they did that!!

1993 was the Cary Mansfield era when they was a whole list of stuff scheduled for release but hardly any of it surfaced.

[jobeterob]

After the sale to MCA, I'd swear MCA lost their way.

[Hotspurman]

I expected MCA to explore the back catalogue. Do you think they did that!!

1993 was the Cary Mansfield era when they was a whole list of stuff scheduled for release but hardly any of it surfaced.

Record company purchases have been a part of the industry right from day one – didn’t Berry Gordy himself acquire Ric Tic and Golden World, as well as others, in order to eliminate competition within Detroit?

As far as I recall, the acquisition of Motown was supposed to enable MCA to have an immediate presence in the soul/R&B market, an area they had been significantly deficient in over previous years. It might have made sense if they had then actually done something with the label, but with MCA then becoming part of a huge round of acquisitions [[Island, A&M, Virgin etc) as the big companies attempted to buy their way to market share, pretty much everyone lost their way. In answer to your question, no, I don’t think MCA fully explored the back catalogue, and as we have been seeing over the past few years, such a task is a long term project. We’ve still only scratched the surface, as far as I’m concerned.

[dvus7]

Question!!!! How much did Boston Ventures put up to purchase Motown????

[mofreaktown]

Motown was sold to MCA and Boston Ventures in 1988 for $61 million.

[dvus7]

Motown was sold to MCA and Boston Ventures in 1988 for $61 million.

I know that!!! But I don't think that MCA put up any of the money, they just negotiated the DEAL!!!!!

[mofreaktown]

According to the news reports at the time, MCA put up 20%.