I like Jay-Z, he got a Harlem state of mind
Following in the wake of similarly mammoth pacts with Madonna and U2, raps hottest star signs a $150 million deal for touring, recording and merch.
Brooklyn-born rapper Jay-Z has finally closed a $150 million deal with concert promoter Live Nation that will finance his own entertainment venture and handle his recordings and tours for the next ten years…News of the pending deal between the rapper, formerly known as Shawn Carter, and the promotion giant first broke in early May. Confirmation that the deal was closed took place Thursday with a Form-8K that Live Nation filed with the Securities Exchange Commission.
In the filing, Live Nation declared that Jay-Z will get 775,343 Live Nation shares, with an option for 500,000 more shares (at the exercise price of $13.73). The stock will actually go to Marcy Media, a company affiliated with Jay-Z.
Together Marcy Media and Live Nation will create Roc Nation, Jay-Z’s new entertainment venture. According to published reports, Live Nation will likely contribute $5 million a year to cover overhead, plus another $25 million to finance any future investment or acquisitions by the rapper. Moreover, Jay-Z will get $10-million per alube for a minimum of three albums, as well as another $20 million for other rights.
The rapper is currently involved with a 28-tour promoted by Live Nation with Mary J. Blige.
Jay-Z was formerly affiliated with Def Jam, where he had also served as former chief executive.
Live Nation’s deal with Jay-Z follows other spectacular deals with major artists: including a reputed $120 million deal with Madonna in October as well as a roughly $100 million pact with U2.