Live Nation CEO Michael Cohl has resigned as a director of the company.
The internal fighting within Live Nation has been the subject of industry gossip over the last week, with reports that Cohl and CEO Michael Rapino are no longer on speaking terms.The official propaganda from the company from Rapino and Cohl is extremely toned down. "Michael's contributions to the formation of Live Nation Artists have been immeasurable," said Michael Rapino, President and Chief Executive Officer of Live Nation. "With his vision and guidance we have signed historic deals with JAY-Z and Madonna, whose 'Sticky & Sweet' tour is currently selling tickets at a record breaking pace around the world. We are also nearing completion of our proposed long-term agreement with U2. The foundation of Live Nation Artists is firmly established and I thank Michael for agreeing to stay with the company as a consultant."
"Live Nation's strategy and execution remain on track as we are committed to acquiring additional artists' rights beyond the concert tour, including unified rights deals with select artists," continued Mr. Rapino. "At the same time, we continue to take a disciplined financial approach and are focused on expanding cash flow and margins and increasing value for shareholders. We will continue to build out our integrated model as we selectively look to add more artists that can feed our core concert pipe."
Michael Cohl commented: "I am extremely proud of what we have accomplished thus far at Live Nation Artists. We have built a division whose current strategy we believe is set to unlock great value for our shareholders and our artists. I look forward to continuing to work closely with Michael Rapino, and remain committed to further growing Live Nation's enterprise value as a consultant to the company."
Live Nation stocks closed 9.77% down today on the news of Cohl's departure.
The animosity in the Live Nation camp occurred as a result of the high prices Cohl was paying for 360 deals with major artists.
A 360 deal means one company controls all aspects of an artist's income including recording, touring, merchandising and endorsements.
The most high-profile deal was done with Madonna. Live Nation will control all of her future recordings and tours.
Live Nation also recently announced a $150 million deal with Jay-Z for the same thing.
Since the Madonna deal, Live Nation stock has dropped more than 40%.
Despite becoming a company in freefall, Cohl wanted to do more of those deals, as many as 15 more. The Rolling Stones were his next target. Shakira was also a contender.
Cohl toured the A Bigger Bang tour and is listed as a producer of their 'Shine A Light' movie.
Rapino was opposed to any more 360 deals that started the executive standoff.
Cohl is the largest individual shareholder of Live Nation. His personal stock is worth around $90 million.
