As reported by WSJ today:
Band's Stock Sale Will Cost Company Millions; Madonna Can Cash In, Too
By ETHAN SMITH
The Irish rock band U2 hasn't toured since 2006, but it stands to make $25 million in a sweetheart stock deal, according to SEC filings Wednesday and people familiar with the matter. In March, the band struck a 12-year deal with Live Nation Inc., that called for the concert promotion giant to pay U2 partly with stock. Live Nation promised to pay tens of millions of dollars to high-profile artists in exchange for several years' worth of revenue from a broad range of their work, including concerts, online fan clubs and t-shirt sales. The idea was pitched as a novel way to make money in the ailing music business.
European Pressphoto Agency The company had held up the stock component of the U2 deal as evidence of the band's faith in Live Nation, as well as confidence in its new business model. But that faith was shaken Wednesday when the band moved to sell the shares, forcing Live Nation to make up an estimated $19 million in losses., Live Nation had guaranteed that U2 would receive $25 million for 1.6 million shares. But the current market value was just $6.1 million at the close of trading Wednesday. That leaves Live Nation on the hook for the balance, which the company said Wednesday in a SEC filing it would pay with cash on hand or borrowed money. There could be more bad news coming from another of the company's marquee acts: Madonna. In April, Madonna is eligible to sell $25 million of stock under the terms of her contract, even though the stock's market value has plunged 83% since she struck her deal in October 2007.
Live Nation Chief Executive Michael Rapino sought to play down the significance of the stock sales. "Madonna and U2 are the only two deals that did contain this provision," he said. "The Madonna business is great, and we look forward to monetizing our investment in U2 next year." Madonna's current "Sticky & Sweet" world tour is the pop star's first outing since she signed her 10-year, $120 million deal with Live Nation. Live Nation expects to start recouping its investment in U2 when the band begins a planned tour next year and releases its 12th album.
Reached in London, where U2 is wrapping up work on the forthcoming album, band manager Paul McGuinness said: "We're very much in business with [Live Nation] and we're planning to tour in 2009." Madonna and U2 were the first of six superstar acts whom Live Nation has agreed to pay hundreds of millions of dollars each for several years' worth of revenues. Jay-Z, Nickelback and Shakira are among the other artists with whom Live Nation has deals.
i want Madonna to return to ireland, i have never been a fan of hers until last year when i bought my every first Madonna album "Hard Candy" - but live nation or Madonna hasnt decicded to come to ireland which is unfare especially with people not having enough money to go to england or wales to see here one stop wouldnt be to hard, would it ?
Posted by: Kevin Daly | March 05, 2009 at 01:27 PM
I wanted to read your post but was not able to view it. How can I view your post?
Posted by: Jeff Paul Internet Millions | March 16, 2009 at 09:54 PM
hey there! I found your post really interesting. I was looking through a few blogs and checked out your post even! Your post increased my wandering knowledge.
Posted by: Make Money Blogging | March 25, 2009 at 05:33 AM
penis enlargement products and penis enlargement reviews that discover top penis size enlargement pills, patches, oils and devices that gain 1-3 inches gain in your penis size at www.penissizeenlargement.net
Posted by: penis enlargement | July 12, 2009 at 03:11 PM
Are you ashamed of your small size penis? here is the top penis enlargement methods and penis enlargement products that enlarge penis size naturally in weeks at www.Naturalherbalz.com
Posted by: penis enlargement | July 13, 2009 at 12:40 AM
This is gonna huge, i just cant belive it that i am standing at a great blog of my life, i am really glad to have my comment here in very decent topic. thanks to webmaster.
Posted by: Acomplia | July 23, 2009 at 06:22 AM
hello webmaster! i am really appreciating you for your kindness that you have made a really interesting blog and pick all the great topics for which peoples are always seeking to get information and share their ideas. Great work Man and keep it going. God bless you!
Posted by: enlarge penis | August 01, 2009 at 03:10 PM
This is one of the best blog, i have ever seen in my life, really impressive work by webmatser, i must wanna share my views about this posting, that very low rang of people talk about this in public forum so hats off to blogger. thnx.
Posted by: penis enhancement | August 06, 2009 at 11:21 AM
Rimonabant (also known as Zimulti, Acomplia, Slimona or Obitone) is an anorectic anti obesity drug. It is a CB1 cannabinoid receptor antagonist. Rimonabant has been found to stop food craving enough to help people lose weight, and could also help curb other unhealthy urges, such as smoking. www.genericacomplia.us
Posted by: Acomplia | August 10, 2009 at 02:42 PM
Hair Loss Treatments - Products Cures and Solutions Guide. Read the Hair Loss Guide - Know about Causes, Treatments, Solutions and hairstyles for Men and Women at www.Managehairloss.com
Posted by: Hair loss | August 17, 2009 at 02:48 PM
Penis Enlargement ; The top-rated penis enlargement device. Penis enlargement science easy fast and safe penis enlargement at www.penissizeenlargement.net
Posted by: Natural Penis Enlargement | August 19, 2009 at 11:12 PM
Nice blog, its great article informative post, thanks for sharing it. Thanks for the information!
v
Posted by: youtube videos | December 03, 2009 at 01:15 PM
hello friend excellent post about For U2, Live Nation Deal Rocks thanks for sharing!!! I'm very interesting in this post
Posted by: generic viagra | January 19, 2010 at 01:48 PM
It's really great to post my comments on such a blog. I would like to appreciate the great work done by the web master and would like to tell everyone that they should post their interesting comments and should make this blog interesting.
Posted by: buy viagra online | February 23, 2010 at 10:30 PM