: LOS ANGELES (Reuters) - Jay-Z is on the verge of a deal with concert promoter Live Nation worth about $150 million that rivals the biggest music contracts ever, the New York Times reported on its Web site on Wednesday.
Jay-Z was said to be planning to leave his longtime record label, Def Jam, for a package with Live Nation, which includes financing his own entertainment venture as well as recordings and tours over the next decade.
The deal, which sources told the newspaper should be finalized this week, comes after Live Nation earlier this week announced a 12-year agreement to handle the merchandising, digital and branding rights and touring of Irish group U2.
Live Nation, which unveiled a $120 million deal with Madonna five months ago, has been expanding its business model to develop more far-reaching and deeper relationships with artists beyond just handling their touring as CD sales plunge.
No one at Live Nation was immediately available to comment on the Jay-Z report.
Like many other performers, Jay-Z -- whose real name is Shawn Carter -- has seen his record sales fall but he has also pursued other business ventures such as a clothing line, Rocawear, which he sold last year for $204 million, and a chain of 40/40 nightclubs.
This has kept him at the top of Forbes magazine's annual list of "Hip-Hop Cash Kings" with estimated earnings of $34 million in 2006.
The New York Times said the deal with Live Nation would involve the concert promoter funding a start-up of a venture called Roc Nation that would be an umbrella for the rapper's outside projects which are expected to include his own label, music publishing, and talent consulting and managing.
The venture would split profits with Jay-Z.
Jay-Z, 38, last year stepped down as president of Def Jam Records, a unit of French media concern Vivendi SA's Universal Music Group, saying he wanted to "take on new challenges."
As well as being one of the world's best known rappers who regularly tops the lists of richest hip hop moguls, he is also known for his romance with R&B singer Beyonce Knowles.
People magazine reported this week that the couple had taken out a wedding license in Scarsdale Villge, New York, that is valid for 60 days. But representatives for the couple have declined to comment on latest rumors of an impending marriage.
IDIOTS...Jay-Z is already dumb rich..and worst...he isn't giving any of yuo guys ***!!!!
He is just gonna brag about it on another song. Quit watching and start making.
Why the *** is it news that he makes more money...he probably leaked the story to MTO so he can keep up with 50. Since 50 is the definition of hip ho wealth now.
You know Jay has a jealous streak...i don't c why he should since he signed a pack with the devil.
"***...you love the attention" lol Nas was right
i wonder why Live Nation is paying Jay-Z more than Madonna or U2. He certainly doesn't generate as much revenue than the other two. Madonna's last tour was her most successful ever and raked in over 200 million. Jay-Z tours don't even come close to that. And his last album didn't sell all that well either. Madonna's "Confessions" album went double platinum in two weeks. American Gangster still hasn't gone double platinum.
LiveNation is ahead of the game when it comes to "The New Music Business" they do these deals with artist in which they rap up everything..concerts..cd's,merchandise .etc..the whole nine...the artist gets a HUGE payout upfront...it makes sense for Jay...he is on the other end of his music career...'nuff said dre of Caramelhoneys.com
@TuthBtold
It would be nice if he gave money to colleges. I am sure he donates just for the tax right offs if not to help others. but he can do what he wants with his money. he made it not you. not the college students.
yall need to stop hatin, get your money. the man has business talent a good music sound a bit of luck.
dont get mad because he is not paying you any money. get your own.
@shi
Since when is asking why a media conglomerate is paying more money to an entertainer who, thus far, hasn't been as marketable as other artists who have generated significantly more revenue, hating? Apparently a lot of people give a *** about Madonna and U2, cause they sell more tickets, albums, and merchandise than Jay does. Maybe you like to don't like to question specifics when information is spoonfed to you, but I'm a little more inquisitive.
Word to the wise. Jay only has one ***, sweetpea, and I think Bey is riding it right now, so you might wanna ease up on your stanning and wait your turn.
@seraphim
you got a point but maybe it is because Jay will be bringing something different to the table. that may be why he is being paid more.
maybe he simply had a better agent to negotiate. madonna may have been ripped off
maybe madonna is getting 12 mil a year on a ten year deal and Jay is getting 12.5 a year on a 12 year deal because he has to work longer on his contract (2 more years)
who know why exactly. but some of that may be on the money
@mightyc42
I could see them paying that to Beyonce or Britney because I don't think their careers have hit a plateau. Artists like Bey, Brit, and Madonna have a broader appeal than Jay-Z because their music isn't built on misoginy and violence. These last few Jay-Z albums "Kingom Come" and "AG" really haven't attracted Jay any new fans. It's old fans who bought them. "Confessions . . ." was a real surprise from Madonna. I hadn't bought a Madonna album in years, but I bought that one, and I'm probably gonna buy the next one because Timbaland and Justin Timberlake are listed as producers.
Jay got what he got because it was deserved. He saved thousands of children and adults by installing water pumps, not to mention his S.Carter annual scholarship fund, his SILENT work with various other charities, computers he’s put in schools, etc. He does more HELP under the radar than that’s public info. He got more from Live Nation because they’re housing not only him and his concerts, but his ventures that were under Def Jam’s distribution as well as it’s money for his ROC label and the artists on their (Kanye, Bleek, Tru, SP, etc.). LIVE NATION IS BASED IN CONCERTS and that’s what they looked at from Jay. He’s the King of selling out concerts on top of being the business man that he is. His ventures aren’t failing - they looked at that too. JAY’S GOOD BANKABLE MONEY. No every idea or business move isn’t originated from him - Steve Stout will tell him sometimes if he thinks this is a good fit, etc., but BEST BELIEVE HOV ORIGINATES 80% or more of the business moves he’s made. He’s done that throughout his career - he’s always went to the left and originated a move that no one has made which made him the BUSINESS MAN that he is. Hov will be in demand to still tour on his own because he has tons of hits he’s never even done in concert, so he could go on another 10 years. BUT IT’S NOT JUST HIM THAT’LL BE TOURING - HE’S GOING TO PUT OTHERS ON TOUR WITHOUT HIM.
This move was made so he can finally take a back seat and push his artists. He doesn’t want to go on forever, but he had to come out in 4th quarters to keep his label ROC afloat and when Kanye became an artist, Jay didn’t have to drop as much - that’s smart business.
It’s not a joke or a fluke that he’s about $300 mil away from being a billionaire.
Couple of new pieces of info in this article.
[link to external website removed]
Jay-Z got his business start slinging "so much coke / you could run a slalom" -- at least, that's what his lyrics indicate. These days he's about to turn some serious coin old school as an on-the-books capitalist gangsta.
Nicknamed "Young Hov," "Hova," and "Jigga," this young rapper-turned-suit is about to bank $150 million from concert promoter Live Nation (nyse: LVN - news - people ). Representatives from both sides of the deal confirmed the talks on Thursday, with a spokesman for the rapper saying an announcement is imminent.
The 50/50 venture, dubbed Roc Nation, will be an umbrella for Jay-Z's various musical endeavors, including a new record label, musical production and talent management.
Live Nation rose 54 cents, or 4.3%, to $13.24, in afternoon trading Thursday following reports of the deal.
Jay-Z's life has all the peripheral trappings and achievements a young *** executive requires. Along with bagging several-platinum albums and being named GQ Magazine's Man of the Year, rags-to-riches Carter also has himself some music royalty arm-candy in the shape of diva Beyonce Knowles.
As A-list members of the glitterati, when they aren't making red-carpet appearances or music videos together, the two make a habit of bouncing around in private jets to lux vacations in Turks and Caicos, St. Bart's and the south of France. The duo recently made headlines when Jay-Z applied for a marriage license.
The rapper, also known as Shawn Carter, flexed his street smart business *** as chief executive of Def Jam Records (See "Jay-Z To The Out") and as founder and owner of Roc-A-Fella, which dabbles profitably in enterprises involving music, clothing, and movies. Jay-Z also owns the 40/40 Club sports bar franchise, with locations in New York and Atlanta. Thanks to his various plays for cash, Jay-Z scored a top spot on Forbes' hip-hop Cash Kings list after banking a reported $34 million in 2006.
Hits like "Hard-knock Life" and "Big ***'***" helped Carter a make a pretty living off a rough beginning. The Brooklyn boy and basketball enthusiast has returned the favor to his hometown. With a small stake in the New Jersey Nets, Carter has been a force behind bringing the team back to New York City and to his old borough.
@ SHI--Jay is not as young you're thinking. I'm sure if already has a child, but he needs to move on with his life, and build a family. IF NOT, HE'LL BE AT LEAST 40 YRS. OLD BY THE TIME HE HAS HIS FIRST CHILD. You can't even play with your kids or enjoy parenthood when you're no longer in your prime. You get tired quick. THERE'S MORE TO LIFE THAN JUST BEING FINANCIALLY SUCCESSFUL, AND HE'S BEEN THERE FOR OVER A DECADE. OH, BY THE WAY, I'M NOT HATING ON THE DUDE, I'M VERY HAPPY FOR HIM. THOUGHT I'LL CLEAR THAT UP TO ALL THE "HATER ACCUSERS" OUT THERE. JEEZ, WHATEVER HAPPENS TO SOMEBODY HAVING DIFFERENT OPINION OR BELEIFS THAN THE MAJORITY, WITHOUT BEING ACCUSED OF HATING. PEOPLE ALWAYS THINK SOMEBODY IS HATING ON THEM, AS IF THEY REALLY HAVE SOMETHING WORTH HATING ON, lol.
@bruklyn I beg to differ on your favorite rappers' givings...I've been to brooklyn and have talked to people there...plus I have relations with several hip-hop writers in NYC. this capitalist "brotha" doesn't send no black kids to college, and as far as his "silent" charitable work? now why would this brilliant businessman keep good publicity "silent"
now tell me I'm hating....see I don't need to live through other people's success...Jay-Z is rich... great...but with kids dying in HIS hometown and cops killing brothas in HIS hometown I think he and 50 and Diddy could certainly do a lot more to raise awareness on certain issues...issues that birthed hip-hop...issues they dont necessarily have to through money at, but just address since they come from the "hood"
What's the difference between Jay, 50, Diddy and any other capitalist in America that exploits the poor? ( rappin about hood *** when you dumb rich is exploitation homie )
Hip-Hop has long been co-opted like all of our art forms and it's biggest stars have willingly cut a deal to do it...I'd say for every 10 million earned put 1 million back in the hood to save lives...after all the good book says "TO WHOM MUCH IS GIVEN MUCH IS REQUIRED" does that apply to celebs or just people with good hearts and a passion for the poor and despised?
I got more respect for the school teacher working in the ghetto that's underpaid...I dont expect rappers to be Dr. King but blacks who "make it" *** get amnesia that's doctors, lawyers, athletes, and rappers ALL OF THEM!
peace
@seraphim
you may be right about Beyonce and Britney but from what I see, they are maybe looking for a certain genre. they already have a pop star with madonna. also, Madonna, U2 and Jay-Z are all older people, they may not want someone in their twenties. they sometimes cause problems (britney, paris, linsay lohan, etc)
then again, I dont think that Britney is all that market abe right now.
I heard on the radio also that the deal is not cut and dry.
he has to do at least 3 albums. he will be in a 12 year contract. Live nation is receiving alot of royalties and rights. and they are financing his investments with 50 mil, which means that he will probably be paying that back. all in all I dont know very much about Madonnna besides that she is bankable. we may get more details later after the deal is set
