MUSIC NEWS- UPDATE 12/18/08- U2 are likely to make around $25 million if they move forward with reported plans to sell their Live Nation shares. The Irish superstars signed a 12-year deal with the company in March 2008 which gives see Live Nation rights to the band's concerts, online fanclubs and t-shirt sales. As we reported, U2 members were given 1.6 million shares as part of the deal and a guarantee that they would be permitted to sell the stocks for $25 million. So, on Wednesday (Dec. 12, 2008), the group moved to sell their stock, according to the Wall Street Journal.
If sale goes through, the Live Nation will lose around $19 million as their shares closed at $3.91 on Wednesday (Dec. 17, 2008) on the NY Stock Exchange. This means U2's shares have a market value of only $6.3 million ! A sale now would be quite a windfall for Bono & Co. Madonna has a similar deal with Live Nation, signed back in October 2007 and she's eligible to sell her shares in the company in April 2009 under the terms of her contract. Watch for that transaction as soon as she's permitted and you have to wonder about the logic of these Live Nation stock deals with major artists !!!
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Some details on the infamous U2/Live Nation deal have been released. The Irish supergroup, U2 is to receive an estimated $19 million worth of Live Nation stock as part of the 12 year deal that Bono & company signed with the music/concert promotion firm. Just yesterday, L.A. based Live Nation registered 1.56 million shares to U2 in a regulatory filing with the USA Securities and Exchange Commission (SEC). The stock will be issued to five individuals designated by the rock band's Evergreen Concepts LLC, according to the filing. The well publicized agreement between U2 and Live Nation, announced in March 08, involves worldwide tour promotion, merchandising, and operation of the band's U2.com web site. When the deal was announced, U2 manager Paul McGuinness said, "U2 are doing their best work right now, on record and in concert. The opportunity to integrate U2 and Live Nation's vision of the future is a great extension of our established business and of our working relationship with Arthur Fogel and Michael Cohl, which started back in 1980 at the El Mocambo in Toronto." The deal, though, is not a true 360-degree pact, as publishing is not included and the band keeps its relationship with Universal Music to release music. U2 is in an elite "club" when it comes to touring. Its last tour, the 2005-2007 Vertigo tour took in nearly $400 million, the second highest ever. With touring alone, the deal should generate more than a billion dollars in grosses over the course of the contract. In addition to U2, Live Nation has also entered into multi-rights deals with Madonna, Jay-Z, Nickelback and Shakira.
In other U2 news, Bono and The Edge have joined the list of the announced performer's lineup for this year's Thelonius Monk Institure of Jazz annual event at the Kodak Theatre in Los Angeles, on October 26. The rockers will take the stage as part of a concert lineup to honor legend, B.B. King, to whom they will also present the organization's Founder's Award, according to a Monk Institute spokesperson.
UPDATE 10/27/08- see video clip of Bono and BB KIng at the Kodak Th event ;
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