According to the New York Times, Jay-Z will be finalizing a deal worth approximately $150 million with Live Nation this week!
The deal will see the rapper/entrepreneur leaving Def Jam to start Roc Nation, a parent company, which will house several of Jay’s business ventures.
As part of the arrangement, Live Nation would finance the start-up of Roc Nation, which is expected to include Jay’s own label, music publishing, and talent consulting and managing. Live Nation is expected to contribute $5 million a year in overhead for five years, with another $25 million available to finance Jay-Z’s acquisitions or investments.
The one of a kind deal also includes an upfront payment of $25 million, a general advance of $25 million that includes fees for his current tour, and advance payment of $10 million an album for a minimum of three albums during the deal’s 10-year term. A series of other payments adding up to about $20 million is included in exchange for certain publishing, licensing and other rights.
Jay-Z said Live Nation’s consolidated approach was in sync with the emerging potential “to reach the consumer in so many different ways right now.” He added, “Everyone’s trying to figure it out. I want to be on the front lines in that fight.”
“In a way I want to operate like an indie band,” he said. “Play the music on tour instead of relying on radio. Hopefully we’ll get some hits out of there and radio will pick it up, but we won’t make it with that in mind.”