U2 Net 19 Million in LiveNation Shares

[whatAday]

Because having a sense of humour is healthy and enjoyable.

oh well, you got me.

 

[Lila64]

http://www.forexpros.com/news/general-news/live-nation-to-lose-$19-mln-in-u2-stock-deal--wsj-15040

Live Nation to lose $19 mln in U2 stock deal- WSJ2008-12-18 06:12:51 GMT (Reuters)

Dec 18 (Reuters) - Live Nation Inc will lose about $19 million as Irish rock band U2 moved to sell its shares in the company, the Wall Street Journal said, citing regulatory filings and people familiar with the matter.

Live Nation had guaranteed that U2 would receive $25 million for 1.6 million shares as a part of a 12-year deal signed in March, the paper said.

With Live Nation's shares closing at $3.91 Wednesday on the New York Stock Exchange, the market value was about $6.3 million.

In April, Madonna is eligible to sell $25 million of stock under the terms of her contract, even though the stock's market value has plunged 83 percent since she struck her deal in October 2007, the paper said.

"Madonna and U2 are the only two deals that did contain this (stock sales) provision," Live Nation Chief Executive Michael Rapindo was quoted by the paper as saying. "The Madonna business is great, and we look forward to monetizing our investment in U2 next year."

Live Nation could not be immediately reached for comment by Reuters.

 

[A stor]

Thank you for the update. I don't blame U2 for selling their shares. I would have done the same. It seems that even the music industry is affected by an unstable Wall Street.

 

[U2girl]

So they sold the shares but the 12 year deal is still on ?

 

[A stor]

I hope so! I would love to see U2 tour, for as long as they can.

 

[bram]

Major ouch for Live Nation. Even when they are each worth over half a billion, U2 can still screw over the man. Nice!

 

[biff]

They had to find some way to pay for Edge's yacht and Bono's reno.

 

[schnumi]

I hope so! I would love to see U2 tour, for as long as they can.

U2 will tour they don't need anyone for that.

 

[U2387]

I am so happy U2 beat Live Nation on this one! Anyone who has read my posts on the original deal knows my feelings on the Live Nation sinking ship, I work directly with many of their management in Boston.

This shows the brains that U2 and McGuiness have. They insisted that any shares in Live Nation come with a "put," which is an option to sell at a certain per share price that prevailed at one time(in this case, when U2 purchased the stock) regardless of market conditions when you sell. As someone already made clear, the implications of this are U2 sells the stock at whatever dismal price it is getting now, and LiveNation, in order to honor the put option, must make up the difference. Good for U2, this is how you make smart business decisions given: A)the tanking economy and credit crisis and B.)The fact that Live Nation, though the biggest in the business now, is a sinking ship losing market share by the day.

 

[AndrewCowley]

Not sure if anyone has mentioned this... Do you think that this will only push up ticket prices for the next tour? Live Nation will be wanting to recoup not only their initial outlay but also their loss on this share deal. If so then that is very bad news. It will be an 'excuse' for U2 signing off on extra-high ticket prices.

 

[coolian2]

Bad Management 101.

 

[coolian2]

Not sure if anyone has mentioned this... Do you think that this will only push up ticket prices for the next tour? Live Nation will be wanting to recoup not only their initial outlay but also their loss on this share deal. If so then that is very bad news. It will be an 'excuse' for U2 signing off on extra-high ticket prices.

U2 don't need an excuse. This will be highly convenient for them, however.

 

[gareth brown]

as long as the next U2 gig I go to doesn't cost EIGHTY FUCKING POUNDS for a really bad side-seat high up in the stands then great.

 

[vaz02]

Standing is what gigs are all about.

 

[sue4u2]

U2 exercised clause in the contract that stipulated when shares fell below a certain amount they would sell and call in the marker or "put" as U2387 said.
Live Nation will probably have to do this with Madonna also. They (LiveNation) have stopped making this arrangement, obviously.
TODAYonline

 

[gareth brown]

Standing is what gigs are all about.

yeah..on the PITCH