MORE Indie Invaders / POSTED BY: KINGSOFAR

In an effort to reshape the music industry, Live Nation has been making wide-ranging but expensive deals with older artists such as Madonna and Jay-Z.

Live Nation has pledged millions of dollars to these artists in return for the rights of release of recordings, promoting the concerts, and selling merchandise.

After spending $120 Million for the material girl and $150 million for Jay Z — Live Nation CEO Michael Rapino does not want to enter into new deals until the deals that are already in place show to be fruitful. Of course, this is the million dollar question — is the material girl and Jay Z worth it?

Apparently the company’s chairman, concert promoter Michael Cohl (pictured) likes to spend. Unlike Michael Rapino, Cohl wants to quickly strike deals with as many as 15 more artists creating shockwaves within the company.

According to sources the dispute lead to a full-blown feud a Mr. Cohl threatening to leave Beverly Hills, Calif.-based Live Nation. Sources now say Michael Rapino and Cohl are talking about future strategy.

Live Nation’s stock price has fallen more than 44% since its first big deal with Madonna.

Insiders claim that Live Nation is entering into HIGH RISK deals because profit margins in concert promotion are thin and a bad tour could undercut the overall value of a package deal. Michael Cohl who is largest individual shareholder has been pushing the strategy’s limits says the Wall Street Journal.

C’mon, just give Cohl the credit card…

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