BofA: The Madonna Deal Explained in 72 Words

We employed many words last night to explain why losing Madonna is a good thing for Warner Music Group, and why winning her is of dubious value for Live Nation. This morning, BofA analyst Michael Savner is more concise:

There is clearly headline risk associated with a Madonna defection. However, the bigger risk, in our view, would to overpay for an artist that does not seem to be generating the revenue to support the contract…We think the deal is more of a bold statement by Live Nation that it wants to quickly get deep in the music business, and less an example of Warner Music’s inability to close a good deal.

Related: Bye-bye Madonna: Warner Music Dodges A Bullet
Live Nation’s $120 Million Bet: Breaking Down The Madonna Deal