Banc Of America: Madonna Exit Won’t Trouble WMG

Banc of America Securities analysts have written a report titled “For $120 Million, She’s All Yours” in response to news Madonna was close to leaving Warner Bros. Records and signing a ten year deal with Live Nation. The report said there is “headline risk associated with a Madonna defection. However, the bigger risk would be to overpay for an artist that does not seem to be generating the revenue to support the contract being discussed.” They also cite that the Material Girl will be 60 when the deal ends. Banc of America has a buy on WMG (NYSE), with a price target of $16 per share. WMG closed Friday at $10.95. Read more.