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Nashville — Live Nation is officially in the Jay-Z business.
In its latest 360-degree deal with a top-selling act, the company last week filed a Form-8K with the U.S. Securities and Exchange Commission that states 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 (nee Shawn Carter), in connection with the formation of Roc Nation, a joint entertainment venture between Live Nation and the rapper-entrepreneur.
Talk that Live Nation and Jay-Z were on the verge of closing a major deal began in December. The roughly $150 million pact includes Roc Nation and the rapper’s own recordings and tours for the next 10 years.
Live Nation will 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 albums within the deal’s term. Roc-A-Fella Records founder Jay-Z also will receive an additional $20 million for other rights, including publishing and licensing. Live Nation already is producing the current Jay-Z/ Mary J. Blige tour, which is putting up sellout numbers.
The Jay-Z deal follows major pacts Live Nation has struck with Madonna and U2. Speculation is that other mega-deals are pending, ranging from the Zac Brown Band to big sellers Michael W. Smith and Shakira.(partialdiff)
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