Entertainment

Live Nation officially completes $420 million acquisition of Ocesa Entertainment

Guadalajara-born singer, Alejandro Fernández, who is signed to Live Nation’s Ocesa Entertainment’s artist management. Image source: Viva Iquique

Back in September, Live Nation (NYSE: LYV) “Continue” the acquisition of Mexican concert promotion company Ocesa Entertainment, which had previously ordered an acquisition of approximately US$420 million (MXN 8.84 billion) due to the COVID-19 pandemic. Now, the big deal is officially over.

The promoter based in Beverly Hills recently announced completion of the deal, specifically including a 51% stake in Mexico City-based Ocesa Entertainment. Live Nation originally announced the multi-million dollar play in late July 2019.

Amid unprecedented financial disruptions caused by COVID-19 – especially for crowd-based gig spaces – May 2020 saw parent company Ticketmaster come back on agreements with Latin American live entertainment company CIE and mass media group Grupo Televisa.

But as mentioned at the outset, Live Nation said about three months ago that it was going to go ahead with the purchase, which was worth nearly $450 million some time but has dropped to its current value due to exchange rate fluctuations. (Seven percent of the purchase price “will be held by Live Nation and withheld to cover operating losses, if any, for a period after closing.”)

Recovering from 2020 lockdown measures and mass gathering bans, Live Nation in Q3 2021 generated about $2.7 billion — up from $184 million in the same three-month period last year.

The company also relayed that the quarter “marked a return to operations on a large scale,” while CEO Michael Rapino, acknowledged that his company had sold more than 22 million tickets to concerts that were held. scheduled next year, predicting that 2022 “could be a record year.”

During the first seven days of December, Live Nation announced a number of 2022 events, consists of some comedy shows, Primavera Sound Los Angeles (booked in September and starring Lorde, Nine Inch Nails, and Arctic Monkeys), 27-day HAIM tour, compact concert series from the newly formed Earthlings group by Eddie Vedder and The Speed ​​of Now by Keith Urban World Tour, among many other tours.

Keeping the following points in mind, Rapino said of the acquisition of Ocesa in a statement: “As we continue to bring shows back around the world, we are delighted to officially welcome OCESA to Live Nation. Alex and the OCESA team are amazing what they do, and together we look forward to creating even more amazing live experiences across Mexico and Latin America. ”

CIE COO Alejandro Soberón Kuri is set to sign on as CEO of the “newly formed joint venture” between Live Nation and the sellers, while Rapino is expected to serve as chairman of the board. organization’s. Notable in conclusion is that Ocesa owns Ticketmaster Mexico and an artist and label management division called OcesaSeitrack. CIE overall holds the operating rights to Mexico City’s Centro Citibanamex.

At the time of publication of this work, Live Nation Warehouse was up about two percent from Monday’s close, which in itself marked a gain of about seven percent from Friday’s LYV end-of-day value. For further reference, Live Nation’s current value per share is $109.01, though it reflects a roughly $19 drop from a 52-week (and all-time) high of $127.75 , marking a 56% increase from the beginning of December 2020.

https://www.digitalmusicnews.com/2021/12/07/live-nation-acquires-ocesa/ Live Nation officially completes $420 million acquisition of Ocesa Entertainment

Caroline Bleakley

USTimeToday is an automatic aggregator of the all world’s media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, all materials to their authors. If you are the owner of the content and do not want us to publish your materials, please contact us by email – admin@ustimetoday.com. The content will be deleted within 24 hours.

Related Articles

Back to top button