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

12/18/08, 12:05 pm EST

Photo: Getty

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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Comments

the porksword | 12/18/2008, 2:48 pm EST

Maybe U2 should buy Live Nation…

Dan | 12/18/2008, 6:19 pm EST

I fought back tears when I read that U2 are having a hard time making ends meet.The price of gas for their luxury yacht parked in the South of France keeps going up and up,and it`s harder for them to make investments on Wall Street with the stock market on the fritz,they also suspended building their tower in downtown Dublin,but don`t worry,by end of 2009, they`ll rake in another 500 million.PS-Make poverty history!.

News Bulletin | 12/18/2008, 6:51 pm EST

Hey Dan, U2 ain’t having a hard time making ends meet, they are guaranteed the 25 mil for the stocks they sold back. Sounds like a pretty savvy business decision to me. Did you read the article? Or did you just see U2 associated with money in a news article and decide to try for elitist-hipster douchebaggery? You sure succeeded on that count. Are you going to look up how much money KISS, AC/DC, Madonna, Bruce Springsteen, and Paul McCartney are worth and slag them too? U2 is the one of the most successful rock and roll bands ever. Should they try not to be successful? If you want to hold that against them, fine. If you want to claim that since they are successful, they shouldn’t attempt to create charities and causes to contribute to, then thats fine too. But what you come off sounding like is a whiney bourgeois snarky bitch. Its funny how many stories we hear about rock bands that get ripped off by promoters and crappy business deals and how their fans feel sorry for them. I don’t begrudge U2’s success for one second. They have earned it every step of the way. It’s like Jason Newsted said about Metallica (when he was still with them). “Sell out? Yeah, we sell out. Every tour, every arena, every place we play.”

Tim | 12/21/2008, 8:20 am EST

Hey “news bulletin”, How much money has Bono or U2 personally contributed to these charities they founded?. Why does Bono tell everybody else to make poverty history, while his own millions are off limits?.Even actress Sandra Bullock donated one million dollars of her own money to Tsunami relief in 2005.Celebrities who dust off their own personal checkbooks for charitable causes are putting their money where their mouth is,and leading by example. I have nothing against U2 getting rich, but how much are they giving to these charities?,if anything?.Why don`t they make it public?.If Bono made it public, and gives quite a bit, I salute him. If he doesn`t give anything, I`m not listening to him,he`s a politician.

replikhant | 12/21/2008, 2:26 pm EST

newsbulletin´s post is very accurate. We are always bitching about how the RIAA sucks because they vampirize the artists they sign. U2 and metallica are two bands that have had the wits and the balls to take control over their music and cash. What they do with their money is their own business.

News Bulletin | 12/22/2008, 5:25 pm EST

I guess its not enough to create charitable organizations. Tim here would have demanded that Clara Barton open up her checkbook and show how much she contributed to the Red Cross after she founded it. Regardless, whether or not Bono contributes to the organizations that he FOUNDED OR HELP CO-FOUND is immaterial to me. This guy spearheaded the effort to have the US government wipe out 450 million dollars of African debt, (Jubilee 2000), and then continued the effort with DATA, ONE, and the RED campaign. The Edge helped co-found Music Rising, in which he auctioned off some of his own music memorabilia and guitars to help get instruments for musicians who lost theirs in the hurricanes. You wanna start throwing stones in your glass house, Tim? Is 450 million enough for you, Tim? Nah, he’s a politician. Replikhant hit it on the head. WHAT THEY DO WITH THE MONEY THAT THEY HAVE EARNED IS THEIR BUSINESS. Is is easier to write a check than donate time and effort? Bono does both. He can definitely be irrepressible and a little annoying, but shit dont get done unless you get in peoples faces. Tim, I applaud your $100 check to Do Something. If Bono chooses not to disclose his actual financial contributions, thats more than OK with me. He has done enough to mobilize others throughout his life.

Joe | 12/22/2008, 6:46 pm EST

Haha Tim, you got one thing right. You don’t have to listen to him. It’s actually easier to snipe from the sides and criticize.

Anonymous | 1/6/2009, 6:00 pm EST

Well done News Bulletin, I agree with you completely. Being a huge U2 fan for my whole 14 years of life I am sick of everyone finding ways to make Bono sound like an arsehole for trying to help out the world. You have just stated everything that any Bono or U2 fan belives and stated it with supported knowledge and views, so well done man. Oh and Tim you are obviously not a U2 fan or know anything about Bono as a person and his dealings with the charities he FOUNDED AND CO-FOUNDED. Bono and U2 go about their lives under a strict cover of privacy so they don’t have to exploit their charitable givings to the world. Unlike some celebrities who by doing that are just trying to gain more publicity.

mrpuppy | 1/11/2009, 1:19 pm EST

Bono and the rest of U2 paid no taxes to thier beloved Ireland for years. Ireland had a tax exemption for artist to help usually struggling writers and musicians get by. U2 had earned 100s of millions without paying a cent in taxes. At the same time Bono wanted the US to forgive loans to other countrys .. which means the US workers have to pick up the tab.
It is very easy to be generous with someone else’s money, just ask any politician or Bono.

The Saylor81505 | 1/15/2009, 11:28 pm EST

Pull your head out MRPUPPY. U2 may not have paid any taxes, but they got the US and World Bank to “forgive” loans that were not being paid back in the first place. Interest was mounting due to no principal being paid for decades.These(mostly)dictators hips owed the money and the burden was lying on the shoulders of the weak and poor that had no chance in hell in paying the money back. What good is it to hold a loan over the head of someone that can never pay it back? “Loans” should have never been made in the first place. These “mountains” of debt were insurmountable for all of these countries. U2 sets an example for all of us…none of us should pay taxes! I bet they give more in charity in one year than most make in their whole life. To give of your time is more charitable than money…you truly give of yourself when you give your time and effort! They have more money than time. Bono said it best, ” The God I believe in isn’t short of cash Mister!” Am I bugging you? I don’t mean to bug ya… Peace mrpuppy!

Siri | 2/2/2009, 8:50 am EST

Dan as far as I have seen u are pretty much the biggest and most loyal U2 fan I have seen…..

Anonymous | 2/24/2009, 7:46 pm EST

No Line on the Horizon ??
I’ve had this album for a couple of weeks now…

…there’s ONLY two songs one can identify as OK/GOOD, the rest is pretty lame, honestly even U2 here is going down the appalling path.

They could have done so much better – lack of material perhaps ? DEFO !

Ric Vieira | 2/24/2009, 8:05 pm EST

No Line on the Horizon ??

I’ve had this album for a couple of weeks now…
(don’t bother waiting for the March 3rd release)

…there’s ONLY two songs one can identify as OK/GOOD, the rest is pretty lame, honestly even U2 here is going down the appalling path.

They could have done so much better – lack of material perhaps ? DEFO !

True Led Head | 3/3/2009, 9:44 am EST

Bono and company have contributed more than any person that has posted here knows or will ever know. Bono has a voice and he is led by the most high God, Jehovah the King of Kings and Lord of Lords. He and the band are doing exactly what God has mandated they do for the world. Indeed they do not make public what they contribute monetarily as God tells all men not to. God tells us to help the poor and the meek. What are U2 and Bono doing, just that?

As well U2 is one of the most successful bands ever, making billions of dollars, up there with the likes of Led Zeppelin, Pink Floyd and Metallica however U2 not only puts their money were their mouths are they also make themselves available by donating their time to help the poor and the meek of the world. Most notably on the ravaged continent of Africa, that so desperately needs the help of the world. To those that want U2 to make public the money contributions they make to charitable causes shut up and make the contributions you are to make.

“Judge not lest you be judged”. “He who is without sin cast the first stone”. Guess what you are not without sin just as no man is without sin so sit down and shut up and do your part to help those that are in need as God has instructed you to do.

U2 and Bono have charted a path for others to follow and they are led by none other than God himself. The members of U2 are fine men doing what they are instructed to do by God and when judgment day comes they will have crowns on their heads that they will cast to the King. Will you?

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