Madonna is set to sign a $120 million recording and tour deal. The 'Hung Up' singer is leaving her long-time record company Warner Music Group Corporation after receiving the huge offer from live entertainment promoter Live Nation Incorporated.
An insider said yesterday: "Madonna's management told Warner last week that she would accept Live Nation's offer after the record company refused to match the deal."
Madonna's outstanding contract with Warner requires her to produce one more studio album and a greatest hits record.
Live Nation's proposed 10-year deal promises Madonna, 49, a signing bonus of around $18 million and a $17 million advance in cash and stocks for each of the three albums stipulated in the contract.
Live Nation would own the rights to sell Madonna's merchandise and license her name, and any profits will be split between the singer and the company. They would also have to pay $50 million in cash and stock to promote Madonna's tours.
In a bid to compete with the Live Nation offer, Warner pursued a possible partnership with concert retailer Ticketmaster, which would have enabled them to offer a range of touring services to the 'Material Girl' singer.
Madonna first signed with Warner Music Group subsidiary Warner Bros. Records in 1984. It would be a blow to Warner to lose the rights to her new music and tours but they will retain the rights to sell and license her back catalogue of hits.
Representatives for all three parties declined to comment.
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