The Warner Bros record label is willing to let Madonna sign with Live Nation, refusing to match the rival label's outrageous offer to the 48-year-old entertainer. They argue that it doesn't make economic sense to try and keep her. In a report from Banc of America Securities entitled "For $120 Million, She's All Yours," it is opinioned that:
There is "headline risk associated with a Madonna defection. However, the bigger risk would be to overpay for an artist that does not seem to be generating the revenue to support the contract being discussed."
Ouch.
Fox news did the math and stated that besides, Madonna will be turning 60 years old in the last year of the proposed 10-year deal.
The report ads: "Her loss will not meaningfully impact Warner's near-term sales."
The pop superstar's management informed Warner last week that she would accept Live Nation's offer after the record company refused to match the deal, said a person familiar with the contract negotiations.
Under terms of the proposed deal, Madonna would receive a signing bonus of about $18 million and a roughly $17 million advance for each of three albums, the person said. A portion of the compensation would involve stock, the person said.
Live Nation also would have to pay $50 million in cash and stock to promote Madonna's tours, according to the Wall Street Journal, which broke news of the deal on its Web site Wednesday afternoon.
