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Wall Street Wonders About Madonna's Live Nation Deal

Analysts Ask Are Madonna's Muscles Worth The Money

November 15. 2007

Photo courtesy of the Daily Mail

After Warner Bros beat the steroids out of Madonna with a sarcastic, facetious, jab laden financial report detailing why they would not be resigning her to the plummeting label, others have been taking a closer look at her dubious Live Nation deal, as the numbers just don't make sense. Morgan Joseph & Co. analyst David Kestenbaum wondered the same thing I did last month as to how they are going to make money off a smoke and mirrors, hype driven artist that doesn't have...what's the word I'm looking for...ah, yes, talent.

Considering she's not aging well, like say the stunning Christie Brinkley who is in her 50's and looks fabulous, and Madonna's only talent, if you can call it that, is stripping, did Live Nation just flush many millions down the loo. It appears so. This type of deal would have made sense for a Britney Spears seven years ago. Not a Madonna now.

When Madonna Arnold Schwarzenegger's stand in from Conan The Barbarian is unable to deliver the type of financial returns Live Nation is expecting, due to not doing their homework, the shareholders will be left holding the hag bag.

STORY SOURCE

Ahead of the Bell: Live Nation, Madonna

Nov. 15, 2007, 6:38AM - NEW YORK — Live Nation Inc. on Thursday is expected to provide commentary on a high-profile partnership with Madonna, though one analyst warned that the Material Girl's popularity may fade with time.

In October, Live Nation and Madonna revealed plans to share future music and music-related revenue from the Madonna brand, albums, touring, merchandising, among other sources. The deal reportedly cost the company about $120 million, and Madonna will receive an $18 million signing bonus and partial stock compensation.

Morgan Joseph & Co. analyst David Kestenbaum said many on Wall Street have been in the dark regarding financial details of the deal, but expects Live Nation to provide an update Thursday. Kestenbaum said the deal bodes well for Live Nation's chance to accumulate more artists, but still questioned the longevity of Madonna's notoriety as a pop star now that she's nearing 50.

"We still have questions regarding returns on Madonna, specifically on her popularity longevity and Live Nation's related advance payment schedule for her talent," Kestenbaum wrote in a client note. Kestenbaum said if Madonna is unable to live up to her persona, her CD sales and touring tickets may be affected.

"While we do not discredit the artist's high-profile name, we are slightly cautious of her reliance on high-action, performance-oriented concerts versus an act that is more musically relevant regardless of age," Kestenbaum wrote.

http://www.chron.com

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