Live Nation Acquires Madonna's Merchandising Co.
October 19, 2007 at 5:43 AM (PT)
Fresh from stealing MADONNA from WARNER MUSIC GROUP, LIVE NATION is in advanced talks to acquire the MATERIAL GIRL's merchandising company, SIGNATURES NETWORK, reports THE NEW YORK POST. A deal for SIGNATURES NETWORK, which holds the rights to license and market more than 125 artists including U2, KANYE WEST and BRUCE SPRINGSTEEN, is expected to be announced in the next two weeks, according to four sources close to the situation.
LIVE NATION is paying around $50 million for SIGNATURES NETWORK, these sources said, with one of them adding that the merchandising company generates about $120 million in annual revenue but operates with very small profit margins.
A spokesman for LIVE NATION declined to comment. SIGNATURES NETWORK CEO DELL FURANO did not return a call for comment.
LIVE NATION has been quietly gobbling up ancillary businesses related to the concert industry as a way to extend its reach and diversify its revenue stream. Earlier this year the company acquired the remaining stake in high-end concert T-shirt merchandiser TRUNK it didn't already own.
Last month it acquired the 50% portion of ULTRASTAR it did not own. ULTRASTAR runs the official artist websites for RED HOT CHILI PEPPERS, THE POLICE and others. LIVE NATION also recently bought fan club ticketing service MUSICTODAY and merchandising company ANT HILL TRADING.