Live Nation stock has been in a downward spiral ever since the announcement that the company had signed Madonna.Stock for Live Nation has continued to slide ever since the word of Madonna's new business model with a touring company, away from the tradition model of the record label.
When news of the Madonna deal broke in mid-October, Live Nation's stock price was around $22. In the month prior to the announcement, the stock was stable hovering between $20 and $23.
In the two months since the announcement, the stock has fallen to as how as $12.50 just last week and finished at $14.83 today.
Has Madonna sunk Live Nation?
Shareholders were suspicious, speculating on the company message board from the hope that the Madonna deal was worth a $30+ stock to them through to one comment stating "The impact won't be the direct financial gains from signing Madonna, I'm not even sure it will be a money maker from that point of view".
Madonna still has one more album to deliver to her current record label Warner Music. The album 'Licorice" will be released in early 2008.
After that, Live Nation shareholders will be hoping that the material girl can materialise a better share-price for them.