Madonna abandons Warner Music, announces deal with Live Nation

LOS ANGELES — Madonna's landmark deal with concert promoter Live Nation Inc. marks the latest move by the music industry to find new ways to profit from artists as CD sales slip and the Internet changes the way music is delivered.

The deal officially announced Tuesday in a joint statement by Live Nation and the Material Girl gives the company an all-encompassing stake in her music.

Financial terms were not disclosed. But the 10-year deal is worth about $120 million, a person who spoke on condition of anonymity because of the confidential nature of the matter previously told The Associated Press.

For Live Nation, the signing of Madonna was part of a push to forge similar deals with a range of artists, from superstars to emerging talent, under its new Artist Nation division.

"Madonna is the first step to making Live Nation into the next-generation music company," Live Nation CEO Michael Rapino said during an investor conference call. "We believe it should help attract additional artists."

The strategy has been adopted by other recording companies. Britain's EMI Group PLC signed a similar all-encompassing rights deal with Robbie Williams in 2002.

Madonna made her move after her longtime record company, Warner Music Group Corp., refused to match the terms of the Live Nation offer.

Madonna said in the statement that she was drawn to the deal with Live Nation because of the changes the music business has undergone in recent years.

"The paradigm in the music business has shifted and as an artist and a business woman, I have to move with that shift," Madonna said. "For the first time in my career, the way that my music can reach my fans is unlimited. I've never wanted to think in a limited way and with this new partnership, the possibilities are endless."

The singer still owes Warner Bros. Records another studio album and a greatest hits album.

In its own statement, Warner Music congratulated Madonna.

"She is one of the most remarkable artists of our time," the company said, reminding her fans that Warner Music will still issue her next album and owns her catalog of recordings from the past 25 years.

The deal with Live Nation encompasses future music and music-related businesses, including the Madonna brand, albums, touring, merchandising, fan club and Web site, DVDs, music-related television and film projects, and associated sponsorship agreements, the company said.