What's $120 million when Live Nation expects to gross over $1 billion from the Madonna deal? The company revealed its revenue estimate in a conference call (go here to listen) yesterday. Two new higher margin businesses: Longer and deeper relationships with touring-based artists and online ticketing. Wants to attract other "independent-minded artists." Touring, private events, touring, etc. Does not tie specific advances to specific releases -- revenue streams are cross-collateralized. Artist Nation will maximize revenue from the whole of artists' music ventures. Live Nation said Madonna's 2006 tour grossed almost $200 million and was attended by 1.2 million people. The deal's first album is expected to arrive in two to three years and her next tour within the next two years, and there could be up to four tours in the life of the deal.

Additional details were given on Artist Nation's five divisions: Recorded Music (which will seek new methods of distribution but will also include traditional distribution), Merchandise (using its Anthill Trading, Trust Merchandise and Music Today divisions), Fan Clubs and Ticketing (via recent acquisitions Ultrastar and Music Today), Media Rights and Sponsorships & Marketing (employs over 200 people).

On competition: "We were told we weren't the highest bidder. We were lead to believe it was our platform and our plan that won the day."

How to distribute the recorded music? It will have a traditional component to it, but Live Nation will consider exclusives, deals with big box retailers and pretty much every way to distribute the physical product.

According to a Live Nation SEC filing, Madonna was given $25 million in stock (1,174,371 shares) for her recently inked contract. As of Live Nation's last quarterly earnings date, the company had 65.5 million shares outstanding. Let's do the math: Madonna now owns about 1.8% of the company's stock. The company's Proxy Statement lists the company's security ownership. Madonna, according to this list, would be the fifth largest shareholder of Live Nation and the second largest individual shareholder (behind only L. Lowry Mays, the chairman of the board and founder of Clear Channel Communications, who owns 14.9% of the shares).

[music jobs] New York University is seeking a Department Chair for The Clive Davis Department of Recorded Music.