U2 has signed a 12-year worldwide contract to have Live Nation handle its merchandising, digital and branding rights, according to Billboard.com. The move comes just five months after Madonna signed a massive $120 million partnership deal with the concert promotion organization that also included a three-album recording contract. U2 will continue to record for Universal Music. The financial terms of the band's deal with Live Nation were not disclosed. U2 singer Bono said in a statement that the group wants "a closer, more direct relationship between the band and its audience and Live Nation has pledged to help us with that."

Live Nation has been aggressively expanding into other areas of music besides concert promotion and is looking to build a roster of high-profile signings as the record industry continues to decline.

The major labels themselves are trying sign more acts to "360 deals" which include many more revenue streams beyond recording and publishing.

Live Nation has handled U2's tours for 20 years, and will now oversee its merchandising, sponsorships and other corporate partnerships, its fan club and other Web sites, plus other digital, marketing and creative ventures.

U2 is currently working on its new studio album, the follow-up to 2004's How to Dismantle an Atomic Bomb, with producers Brian Eno and Daniel Lanois. The record is due out later this year.