Thursday, April 03, 2008

Live Nation Scooping It Up

According to the NY Times, Live Nation is now signing Jay-Z for a $150 million dollar deal. He was president of the record label he was on. He now signs with a tour promoter. JayZ is not know as a road warrior.

The deal includes financing for his own entertainment venture, in addition to recordings and tours for the next decade. The pact, expected to be finalized this week, is the most expansive deal yet from Live Nation, which has angled to compete directly with the industry’s established music labels in a scrum over the rights to distribute recordings, sell concert tickets, market merchandise and control other aspects of artists’ careers.

As it's been stated, it appears Live Nation is just bulking up the assets to sell it again. Nothing like regifting. As Bob Lefsetz said, who do you want to be in with Michael Jordan or the hottest young basketball player. He also points out that when David Geffen started his own label he signed Elton John, John Lennon and Donna Summer. Not until he signed a new act, Guns N Roses, did he start printing money. Three veterans now signed to 10 year deals with Live Nation. Jay-Z wil be 49/50 years old when the deal expires. Madonna will be 60/61 and U2 will be close to Madonna. I'm not throwing stones as I could have gone to school with Bono. I just know that touring is not for the faint of heart. The older you get, the less important it is prove yourself or take on the road. We'll see if Live Nation gets the big payday. We'll see if it's worth the money to these acts.

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