Live Nation Inc bought back 1.6 million of its shares from Irish rock band U2 for $25 million, a company executive said, backing up a report the concert promoter would make a $19 million loss on the deal.
The purchase was part of a financial commitment made to the band, Jason Garner, chief executive Global Music at Live Nation, told Reuters.
Live Nation had guaranteed U2 would receive $25 million for 1.6 million shares as a part of a 12-year deal signed in March. The market value of the shares Live Nation bought back was about $6.3 million, based on the stock’s Wednesday closing price of $3.91.
The Wall Street Journal had earlier reported that Live Nation would lose about $19 million in the purchase.
“We have a very long-term commitment with the band and we’re in the process of gearing up for their next world tour,” Garner said.
U2, which hasn’t toured since 2006, will release its 12th album next year.