Will Live Nation Get a Nickelback From Their New Signee?
Concert Promoter Adds Another Big Act to Its 360 Roster
The Live Nation 360 train continues full-steam ahead with the tour promotion company now finalizing a major deal with Canadian rockers Nickelback. This latest move, which comes less than a week after the company announced a 360 deal with Latin superstar Shakira, is, according to various media reports, a three-album, three-tour deal encompassing multiple revenue streams, including merchandising, live, album, endorsement, secondary ticketing and DVD sales. It's said to be worth between $50 and $70 million.
The post-grunge band, fronted by Chad Kroeger, has sold over 26 million albums and still has two albums left to release through its current label, Warner Music's Road Runner Records, before it can record any albums for Live Nation.
UPDATE: Wall Street doesn't like Shakira, but does like Nickelback. Draw your own conclusions about the dubious musical tastes of stock traders.
According to the promoter, Nickelback's last North American and Australian tour in 2006-07 made more than $67 million. The band will join a growing superstar roster at Live Nation that, in addition to Shakira, also includes Madonna, Jay-Z and an extended relationship with U2.
As we've reported before, Live Nation has been pursuing an aggressive strategy of signing major artists to these types of deals, which has led to some discord among the senior ranks of the company. Chairman Michael Cohl resigned recently after disagreements with CEO Michael Rapino, who wanted to slow the pace of new signings.
If this is a slower pace, I can't wait to see what Live Nation will do when they decide to speed things up.