With the Thursday filing of financial documents to the Securities and Exchange Commission, it appears that rapper Jay-Z and Live Nation have finalized a 10-year contract estimated to be worth $150 million.
News of the pending deal broke last month, while Jay-Z was beginning his current, sold out tour with Mary J. Blige. The deal, which resembles the mega-deal Live Nation signed with Madonna last year, calls for Live Nation to pay millions for Jay-Z’s future tours, three albums and to set up a new division at the company for rapper called Roc Nation.
According to Thursday’s SEC filing, Jay-Z is receiving 750,000 shares of Live Nation stock, plus an option on another 500,000 shares worth $13.73 per share. The stock is slated to help fund Roc Nation, which is a business venture where Jay-Z might look to acquire other entertainment or merchandizing assets.
As album sales have dropped in recent years, recording artists have turned to touring and other commercial efforts to increase their streams of revenue, and at the same time companies like Live Nation have looked to broaden their reach by expanding into new markets, such as ticketing.
Last Updated on February 5, 2009