U2 Sell Off Live Nation Stock as Value of Concert Giant's Shares Fall

U2's stock option deal with Live Nation will cost the concert giant $19 million: The band has moved to sell the 1.6 million shares they acquired in their 12-year deal with the company. U2 was guaranteed $25 million when the contract was signed in March, when the shares were worth $25 million. With Live Nation stock slumping to only $3.91 a share as of yesterday, the 1.2 million shares is only worth about $6.3 million. Thus, Live Nation will have to cover the additional $19 million that was promised to the band.

Madonna struck a similar deal with Live Nation in October 2007, but the stock has plunged 83 percent since the deal. The Material Mom can start selling her shares in April '09, and Live Nation will once again have to cover the $25 million. Madonna's Sticky & Sweet Tour profits more than make up for what they'll owe the Material Girl, however, and Live Nation expects the same when U2 tour behind their new album next year. "The Madonna business is great, and we look forward to monetizing our investment in U2 next year," said Live Nation chief executive Michael Rapindo.

Related Stories:
• Madonna Tour Rakes In $91.5 Million, On Pace For Records
• U2 Net $19 Million in Live Nation Shares In Touring Deal
• U2 Signs Deal With Live Nation

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Song Stories

“All Along the Watchtower”

The Jimi Hendrix Experience | 1968

Jimi Hendrix got hold of Bob Dylan's early John Wesley Harding tapes and in late 1967 recorded a version of "All Along the Watchtower" with the Experience in London. Dissatisfied with that first development, Hendrix brought those tapes with him to New York in early 1968 when he began work on Electric Ladyland. Eddie Kramer, Hendrix's engineer at the time, told Rolling Stone that Hendrix "was still looked upon by his basically white audience as the mammoth black guitar hero. There was a constant fight within him to expand himself." Hendrix's successful take on Dylan's work has long been recognized by the songwriter. "I liked Jimi Hendrix's record of this and ever since he died I've been doing it that way," Dylan wrote in the liner notes to his Biograph box set. "Strange how when I sing it, I always feel it's a tribute to him in some kind of way."

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