U2 is set to receive about $19 million worth of L.A.-based event promotion company Live Nation as part of a 12-year contract the band signed last March. This estimated value was released in a Securities and Exchange Commission filing after Live Nation held up their end of the bargain by registering 1.56 million company shares to U2 last Thursday.
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U2 is set to receive about $19 million worth of L.A.-based event promotion company Live Nation as part of a 12-year contract the band signed last March. This estimated value was released in a Securities and Exchange Commission filing after Live Nation held up their end of the bargain by registering 1.56 million company shares to U2 last Thursday.
According to the new deal, Live Nation will control the group’s worldwide touring, merchandise, and official website U2.com, but will not cover publishing or releases. Universal Music’s Mercury Records will continue to release U2’s music. With this agreement, U2 joins the ranks of Madonna, Jay-Z, Nickelback and Shakira, who have also entered into multi-rights deals with Live Nation.
In spite of the volatile state of our economy, the deal promises to be highly lucrative for Live Nation, as U2 consistently enjoys monumental touring revenues. The band’s 2005-2007 Vertigo tour, for example, raked in almost $400 million, making it the second highest-grossing tour of all time. So, throughout the 12-year deal, U2 could make over a billion dollars for their new partners.
In further news, keep an eye out for U2’s first studio album since 2004’s multi-Grammy-winning How To Dismantle An Atomic Bomb, is due early next year.
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