Irish rock band U2 is all set to cash out on their stock held of event management and music promotion company Live Nation. The value of the stock held by the band collectively is estimated at US $ 25 million.
The company also has other big names in music under its contract, but U2 along with Madonna are the only musicians who have a stock sales option in their contract.
The band had concocted a contract for twelve years with the company in March this year, and recieved 1.6 million shares in the company as part of the deal. With the market crash, the shares held by U2 are worth only a forth of the amount they would be recieving from the company, hence the company would have to incur huge loses to make up the difference.
Sources also say that Madonna too might follow the U2 way and cash out on her stocks sometime next year, thus leaving the company in a miserable state.
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mutuswami
Dec 25th, 2008 at 2:54 am | #
so bsiclly live nation is gonna go bust, 25 US $ mil is a crazy amt to recieve specially in the curent scenario