Friday, April 4, 2008

Jay-Z Close to Huge Business Deal

Jay-Z is close to a $150 million deal with Live Nation Inc. that will give the company a stake in almost every part of his career. The contract covers Jay-Z’s music and music related businesses for the next 10 years. Jay-Z would get a $25 million payment upfront and get advance payments of $10 million per album for at least three albums and he would get $25 million towards concert tours. Live Nation would also pay $20 million in exchange for publishing, licensing, and other rights.

The company is also expected to commit $50 million to finance Jay-Z’s investments and his entertainment venture, called Roc Nation, which is suppose to include Jay-Z’s own record label, music publishing, talent consulting, and managing projects. He plans to leave Def Jam if the deal goes through but he still owes Def Jam one more studio album. He was the president of Def Jam for three years but stepped down this past December because he and the label’s corporate parent, Universal Music Group, could not agree on a new contract.

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