Live Nation struck a deal to be U2's promoter, so they guaranteed the band $25 million for the 1.6 million shares of stock they gave them.
Bono now wants to sell his paper, and the market value is just $6 million. Live Nation now needs to pony up $19 million in cash.
On deck is Madonna, who is underwater by 83% on her paper. She just paid $92 million so she could legally sleep with A-Rod, and her Sticky & Sweet tour is a flop.
These sub-prime promoters were just like the overleveraged homeowner. Nobody wanted to pay the mortgage, they just wanted to trade out of it!
When this type of news makes the front page, you better start getting out your shopping lists for stocks!
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