Not a beautiful day at Live Nation
EmptyLive Nation has bought back 1.6 million of its shares from U2 for $25 million, a company executive said, backing up a report that the concert promoter would take a $19 million loss on the deal.
The purchase was part of a financial commitment made to the Irish rock band, said Jason Garner, CEO of global music at Live Nation.
Live Nation had guaranteed that U2 would receive $25 million for 1.6 million shares as part of a 12-year deal signed in March. The market value of the shares Live Nation bought back was about $6.3 million, based on the stock's Wednesday closing price of $3.91.
The Wall Street Journal reported that Live Nation would lose about $19 million in the purchase.
"We have a long-term commitment with the band, and we're in the process of gearing up for their next world tour," Garner said.
Meanwhile, U2 said Thursday that its 12th studio album, "No Line on the Horizon," will arrive March 3 via Interscope.
"Horizon" originally was expected to be released before year's end, but the band was not fully satisfied with the material and continued working.
U2 is expected to tour behind the record next year. The band has been off the road since wrapping its worldwide Vertigo tour in 2006.
Jonathan Cohen is senior editor at Billboard. Reuters contributed to this report.