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

“Baby Got Back”

Sir Mix-a-Lot | 1992

While watching a Budweiser commercial during the Super Bowl, Sir Mix-a-Lot thought the skinny female models in the ad didn’t represent reality. So he wrote this ode to ample bottoms, featuring its famous to-the-point lyric: “I like big butts and I cannot lie.” MTV banished the video, featuring shaking booties and sexually suggestive fruit, to 9 p.m. or later. “I thought my career was over,” he told Rolling Stone. “Then I called Rick Rubin, and I told him the video was banned, and he was like, 'Great!' We sold another 2 million records.”

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