Madonna is reportedly nearing a $120 million recording and touring deal with live entertainment promoter Live Nation Inc.
Speaking on October 10, a person familiar with the contract negotiations said the pop superstar's management last week informed her previous record company Warner Music Group Corp. about the pending action, after the company refused to match the deal.
Under terms of the proposed 10-year agreement, the 49-year-old singer would receive a signing bonus of about $18 million and an advance of approximately $17 million for each of three albums, according to the anonymous source. A portion of the compensation would involve stock.
The source said Madonna could also benefit from the touring component of the deal, which gives Live Nation the exclusive right to promote her tours.
In a bid to compete with the Live Nation deal, the source said Warner pursued a possible partnership with ticket retailer Ticketmaster, which would have enabled the record company to offer touring services to Madonna.
Warner Music and Live Nation declined to comment, and a call to Madonna's publicist was not immediately returned.
Madonna first signed with Warner Music Group subsidiary Sire Records in 1982. Her most recent contract calls for her to deliver one more studio album, expected next year, along with a greatest hits collection.
While losing the rights to the pop superstar's new recordings may prove a blow to Warner, it retains the rights to sell and license her back catalog.
Forbes Magazine estimates Madonna's net worth at $325 million. On September 27, she was nominated for induction in the Rock and Roll Hall of Fame. Inductees will be announced on March 10, 2008.