Live Nation clinches deal with Jay-Z
Joint venture Roc Nation formedNASHVILLE -- Live Nation closed the Jay-Z 360-degree deal Wednesday night, sources said.
The company on Thursday filed a Form-8K with the SEC which states that the artist is getting 750,000 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 mega-deals 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.