LOS ANGELES, California (AP)
-- Madonna and concert promoter Live Nation Inc. announced a deal
Tuesday that will give Live Nation a stake in her albums, tours,
merchandising, films and other music-related projects.
Madonna has been with Warner Bros. Records for her entire career, but "the paradigm ... has shifted," she said.
Financial terms were not disclosed in the joint statement released by
Madonna and Live Nation. A person familiar with the agreement
previously told the Associated Press it was worth about $120 million
over 10 years.
The official announcement came after weeks of
speculation that the Material Girl would abandon Warner Music Group
Corp., which refused to match the Live Nation deal.
in the statement that she was drawn to the all-encompassing deal with
Live Nation because of the changes the music business has undergone in
"The paradigm in the music business has shifted
and as an artist and a business woman, I have to move with that shift,"
Madonna said. "For the first time in my career, the way that my music
can reach my fans is unlimited. I've never wanted to think in a limited
way and with this new partnership, the possibilities are endless."
The singer still owes Warner Bros. Records another studio album and a greatest hits album.
Under terms of the proposed deal, Madonna, 49, would receive a signing
bonus of about $18 million and a roughly $17 million advance for each
of three albums, the person said. A portion of the compensation would
involve stock, the person told the AP.
Madonna could also
benefit significantly from the touring component of the deal, which
gives Live Nation the exclusive right to promote her tours, the person
said. The person asked not to be named because of the confidential
nature of the negotiations.
Live Nation CEO Michael Rapino said
in the statement that Madonna will be the founding artist in its new
Artist Nation division, created to partner with artists to manage their
diverse rights and provide global distribution and marketing.
am thrilled that Madonna, who is also now a shareholder in our company,
has joined with us to create a new business model for our industry,"
Rapino said. "Bringing all the varied elements of Madonna's stunning
music career into the Artist Nation and Live Nation family, moves her
future and the future of our company into a unique and extraordinary
The deal encompasses all of Madonna's future music and
music-related businesses, including the Madonna brand, new studio
albums, touring, merchandising, fan club and Web site, DVDs,
music-related television and film projects, and associated sponsorship
agreements, the statement said. SOURCE
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