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