Sources: LN Clinches Jay-Z Deal
May 02, 2008
- Touring
| RB Hip-Hop
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| JAY-Z |
By Ray Waddell, Nashville
Live Nation closed the Jay-Z 360-degree deal Wednesday night, sources say.
The company yesterday filed a Form-8K with the SEC which states that the artist is getting 775,434 Live Nation shares, plus an option on an additional 500,000 with the exercise price of $13.73. The shares go to Marcy Media, the company affiliated with Jay-Z (born Shawn Carter), in connection with the formation of Roc Nation LLC, a joint entertainment venture between Live Nation and Jay-Z.
Talk that Live Nation and Jay-Z were on the verge of closing a major deal began last December and broke April 2 in the New York Times. The roughly $150 million pact includes Roc Nation, as well as the rapper's own recordings and tours for the next 10 years.
Live Nation will reportedly contribute $5 million each year in overhead for five years and offer $25 million to finance Jay-Z's external acquisitions and investments, plus $10 million per album for a minimum of three album within the deal's term. Jay-Z will also receive another $20 million for other rights including publishing and licensing. Live Nation is already producing the current Jay-Z/Mary J. Blige tour, which is putting up sellout numbers.
The Jay-Z deal follows major, multifaceted pacts Live Nation has struck with Madonna and U2. Speculation is that other megadeals are also pending, ranging from developing artist the Zac Brown Band, to superstar artists like Michael W. Smith and Shakira.
Live Nation has enjoyed a good week on Wall Street, opening this morning at $14.40 per share after closing last week at about $13.80.
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