As concerts are returning around the world, Live Nation Entertainment (NYSE: LYV), the world’s leading live entertainment company, has agreed to proceed with its previously announced acquisition of a 51% controlling interest in OCESA Entretenimiento, a leading promoter in Latin America and owner of Ticketmaster Mexico from CIE (BMV: CIE), a prominent player in the live entertainment industry in Latin America, and Grupo Televisa (NYSE: TV), the largest multimedia company in the Spanish-speaking world.
The acquisition, previously announced in July of 2019, was paused due to the pandemic, and is now expected to close by late 2021 or early 2022. The deal is subject to regulatory approval, which was previously granted during prior negotiations and must be confirmed once again now that the deal is proceeding. The move furthers Live Nation’s goal of building its global live entertainment platform, allowing the company to better service artists who now travel the world to play to their expanding global fan base.
OCESA’s primary ticketing business, Ticketmaster Mexico, is a leading ticketing company in Mexico, with around 20 million tickets sold annually. As part of the transaction, Live Nation also acquired an interest in OcesaSeitrack, OCESA’s booking and artist management joint venture; ICREA, one of Mexico’s special and corporate event specialists; and Centro Citibanamex, an exhibition and convention center in Mexico City.
Live Nation is continuing to build on the momentum for the return to live events with ticket sales and concert attendance pacing ahead of expectations. In August, 8 million fans attended Live Nation events, and September is on pace to reach similar attendance levels. Additionally, the concerts pipeline for 2022 is up double digits from 2019, with touring plans extending into 2023 and 2024. The company also has vaccine and testing protocols in place for events in many regions including the United States, United Kingdom and Canada.
“After serving as Live Nation’s touring, festival, and ticketing partner in Mexico for years, we know OCESA is a stellar business with deep roots in live entertainment in Mexico,” said Michael Rapino, President and CEO, Live Nation Entertainment. “Alex has built a remarkable company and as we continue to build on the return to live, OCESA will play a pivotal role in putting together many incredible shows in Mexico and the rest of Latin America.”
“We are extremely proud to finally join Live Nation,” said Alejandro Soberón Kuri, President and CEO of CIE. “This is a natural evolution of our long-standing relationship and it gives us a unique opportunity to continue OCESA´s 30-year contribution to the development of the Mexican live entertainment industry. Additionally, it will help us foster CIE´s commitment to the promotion of Mexican artistic talent abroad.”
Soberón Kuri will serve as CEO and sit on the board of the newly-formed joint venture. Rapino will become Chairman of the venture’s board of directors.
Live Nation is considering various options to finance the purchase price for the acquisition, which include the issuance of equity securities subject to market conditions. LionTree Advisors served as financial advisor to Live Nation in connection with the transaction.
For additional information, visit www.livenationentertainment.com.
