SONY TO ACQUIRE JACKSON FOOTAGE FOR FEATURE

Sony Pictures Entertainment is closing a deal to make a feature film on Michael Jackson from the 80 hours of rehearsal footage filmed for the concerts Jackson was preparing to perform in London when he passed away.

The studio is expected to pay north of $50 million for worldwide rights to AEG Entertainment, which owns the footage and showed it to studios last week. The film will include several videos that were shot and meant to be interstitial programming shown during the concerts. According to sources, there are at least three videos and one of them is an alternative version of Jackson’s most famous video, “Thriller.”

The interstitial footage was meant to play in 3-D during the "This is It" tour of 50 dates that Jackson was to play in London, but it is unclear whether or not the feature film will display it that way.

“High School Musical” director Kenny Ortega, who shot the rehearsal footage, is expected to become the director of the film and sources said he’s already beginning to put together the footage so that Sony can release the film before year’s end.

Ortega has the time, as he won’t begin directing the Paramount remake of “Footloose” until next March, when star Chace Crawford is on hiatus from “Gossip Girl.”

Several studios were impressed when shown the footage by AEG last week, which was first reported by Deadline Hollywood Daily. Fox, Universal, Paramount and Relativity would likely have stepped up to AEG’s asking price, but all of them knew that Sony had clear first position because the studio owns music publishing rights to Jackson’s songs. The only question was, would Sony step up to AEG’s pricey terms.

The asking price is high: there has never been a film like this one and no way to gauge how it will perform in theaters. The posthumous outpouring of admiration for Jackson all over the world has been remarkable, considering how troubled the singer’s later years became. Still, the true circumstances behind Jackson’s death have yet to be revealed, adding some risk to the investment.

AEG is also selling TV and video rights to the tribute concert featuring Justin Timberlake and other artists, scheduled for August 29, on what would have been Jackson's 51st birthday. The singers will perform the same song list that Jackson planned, accompanied by the band that rehearsed with the late singing icon.

By the time the dust settles, AEG will make a huge windfall on the two deals.