More than two years after it was first announced, Live Nation has completed the acquisition of a 51% interest in Mexican concert promoter OCESA Entretenimiento, the company announced Monday. Live Nation bought its shares from CIE, a Latin American entertainment company, and media company Grupo Televisa, for MXN8.84 billion – $416 million at Monday’s exchange rate but $444 million when agree announced in July 2019.
OCESA significantly improves Live Nation’s presence in Latin America and further expands its international business. Follow BillboardsBoxscore’s 2019 end-of-year rankings. Live Nation’s international concerts – mainly in Europe – totaled 11,830 that year, compared with 28,400 in North America.
The resulting joint venture is led by Alejandro Soberon Kuri, chairman of the board and chief executive officer of CIE. Live Nation CEO Michael Rapino will be the chairman of the board of directors of the joint venture.
Initially, Live Nation believed the deal would close by the end of 2019. But delays in the regulatory approval process delayed the expected closing date to Q2 2020, president Joe Berchtold said. know during Live Nation’s February 27, 2020 earnings call. Then in May 2020, following the outbreak of the COVID-19 pandemic, Live Nation postponed the acquisition while increasing liquidity because of an extended touring shutdown. The touring business has stabilized again and Live Nation is optimistic about its 2022 touring schedule. Despite having $4.6 billion in cash and cash equivalents on the balance sheet as of the date September 30, and $571 million in loans available in a credit facility, Live Nation Sold $450 million in notes in September to finance the purchase.
In addition, the deal adds OCESA’s ticketing business, Ticketmaster Mexico, to Live Nation’s highly profitable Ticketmaster division. “This strategic agreement expands on the already successful relationship we have with Live Nation and we are proud to take it to the next level,” Soberón Kuri said in a statement.
https://www.billboard.com/pro/live-nation-ocesa-acquisition-finalized/ Live Nation completes acquisition of OCESA for $416 million – Billboard