Did U2 snub Diller?

That may be putting it too strongly, but the Irish band did decide to deal with L.A.-based concert promoter Live Nation and not West Hollywood-based Ticketmaster, even though Diller had been talking to Bono and his Elevation Partners investment firm about buying a piece of Ticketmaster. Here's the backstory: Live Nation has been Ticketmaster's largest customer, but the two couldn't agree on contract terms so Live Nation will be leaving at the end of the year to start its own ticket business (which it might have been planning to do all along). Ticketmaster will soon be broken off from Diller's IAC empire (assuming he wins the court challenge from billionaire John Malone), so getting deep-pocket support from a fellow like Bono would have certainly been a good thing. The WSJ reports that talks between Diller and Bono have cooled but aren't entirely off the table.

Unlike Live Nation's $120 million deal with Madonna, the U2 agreement -- which is to be finalized soon -- doesn't cover distribution of recorded music or music publishing. For the same rights Live Nation is getting from U2, the promoter paid Madonna about $70 million. Terms of the U2 pact weren't disclosed. U2 extended its record contract with Vivendi SA's Universal Music Group late last year, according to people familiar with the matter, and also has a long-term publishing deal with Universal. For U2, the arrangement represents a windfall that results ultimately from Live Nation's newly embattled position and its resulting need for loyal allies. The promoter is effectively paying the band to lock in the status quo: Live Nation or its predecessors have produced and promoted every world-wide U2 tour since 1997, and a Live Nation subsidiary already manages the band's Web site and fan club.