Live Nation Seeks to Reassure
With Shakira 360 Deal
Latin Pop Star Signs 10-Year Contract Estimated at $70-100 Million
The concert promoter has been pursuing an aggressive strategy of signing major artists to these types of deals, whereby the company receives a stake in all of an artist's revenue streams. Last year, LN signed a reported $120 million deal with Madonna, a reported $150 million deal with Jay-Z, and, this year, it completed a major deal with U2.
This latest signing comes on the heels of Live Nation Chairman Michael Cohl's resignation last week after an apparent dispute with CEO Michael Rapino over the speed and aggressiveness of pursuing these 360 deals. Cohl was a proponent of upping the intensity of the signings, with the Rolling Stones rumored to be his latest goal.
According to the New York Post, Live Nation and Shakira have been in talks for about 10 months, but sources said that after last week's negative press from the resignation, Rapino wanted to quickly finalize the deal in order to reassure employees the he was committed to the 360 strategy of the Artist Nation division.
Shakira still owes SonyBMG's Epic Records another English-language studio album, expected next spring, as well as a greatest-hits compilation. This means Shakira likely won't deliver her first album to Live Nation until late 2009 or early 2010, at the earliest. Prior contract commitments mean Madonna and Jay-Z are not expected to release Live Nation albums until then, either.