Sony said it signed an agreement with Michael Jackson's estate to buy for $750 million the deceased pop star's stake in Sony/ATV Music Publishing, the world's largest music publisher.

The MOU signed by Sony Corporation of America (SCA) and the Estate of Michael Jackson calls for total payments of 750 million U.S. dollars, which includes a lump sum payment by SCA of approximately 733 million U.S. dollars as well as distributions previously committed to by Sony/ATV to be paid to the Estate.

The sale is the culmination of a process that began in September 2015 when Sony exercised a right that has existed since the joint venture was formed by Michael Jackson and Sony in 1995. This right allows for one partner to purchase the other partner's interest pursuant to a procedure outlined in the Sony/ATV operating agreement.

The parties expect to execute a definitive agreement by March 31, 2016. Sony expects that this transaction will have no material impact on its consolidated results forecast for the fiscal year ending March 31, 2016, and its impact on Sony's consolidated financial results for the fiscal year ending March 31, 2017 is currently being evaluated.

The Estate noted that the transaction will not affect its interests in other music assets, including all of Michael Jackson's master recordings as well as Mijac Music, the publishing company that owns all of the songs written by Michael Jackson as well as songs by some of his favorite songwriters and artists that were acquired by Michael during his life. In addition, the Estate will also retain its ownership interest in EMI Music Publishing.