http://www.billboard.biz/bbbiz/indus...06096752.story
Febuary 03, 2012
By Glenn Peoples, Nashville
Live Nation Stock Jumped After Madonna Tour Announcement
Are investors excited about Madonna's upcoming tour? Or are they increasingly convinced the concert business has left its troubles behind? Maybe a bit of both.
Live Nation's stock jumped 3.4% Friday following reports that tickets for the singer's 2012 tour would go on sale after Sunday's Super Bowl. Earlier in the day Clear Channel launched the singer's new single, "Give Me All Your Lovin'," to radio stations and billboards worldwide Friday morning. Live Nation's 10-year deal with Madonna, reported to be worth $120 million, attracted many critics when signed in October 2007. But given the Super Bowl's unparalleled promotional power and the coordinated publicity push behind her upcoming album and tour, the size of that deal probably isn't weighing too heavily on investors' minds in 2012.
Michael Rapino says he is "optimistic about 2012" and AEG president Randy Phillips thinks 2012 will be "a steady year," according to a Los Angeles Times article on the upcoming year in concerts. "If people are saying it's going to be a banner year, to me that would have to be 15% to 20% more than last year," continues Phillips. "My projections are for maybe a 3% increase. But that certainly beats [revenue] going down."
Friday's bump helped push Live Nation stock up a total of 30.9% in 2012. Friday's close of $10.88 was 52.4% above its 52-week low of $7.14 set in October. Year to date, the Dow is up just 5.3% white the tech-heavy Nasdaq is up 11.5%.
