LOS ANGELES and MEXICO CITY, Sept. 13, 2021 /PRNewswire/ -- 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, for an
aggregate purchase price of MXN$8,835,000,000 or approximately
USD$444 million based on September 10th closing exchange
rate of 19.89, 7% of which will be held back and retained by Live
Nation to cover operating losses, if any, for a period of time
following closing. 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.
One of the most prominent live events businesses globally, OCESA
promotes more than 3,100 events for nearly 6 million fans in a
typical
year across Mexico and Colombia and has a
robust business portfolio in ticketing, sponsorship, food &
beverage, merchandise, and venue operation with 13 premier venues
across Mexico with a collective capacity of nearly
250,000 seats. OCESA promotes concerts for some of the largest
artists in the world including Coldplay, Paul McCartney, and U2 as well as some of
the largest festivals in Latin
America like Corona Capital, Pal Norte, and EDC Mexico, the
latter of which they are a core partner in alongside Insomniac, a
subsidiary of Live Nation. As Mexico reopens, OCESA remains in a great
position to resume concerts and festivals, and the company has a
strong calendar of events for the remainder of the year. 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.
About Live Nation Entertainment
Live Nation Entertainment (NYSE: LYV) is the world's leading live
entertainment company comprised of global market leaders:
Ticketmaster, Live Nation Concerts, and Live Nation Sponsorship.
For additional information,
visit www.livenationentertainment.com.
About Corporacion Interamericana de
Entretenimiento
Corporacion Interamericana de
Entretenimiento (BMV: CIE) is a prominent player in the out-of-home
entertainment industry in Latin
America. The Company is a promotor and producer of concerts,
music festivals, theater, as well as sports, family, and cultural
events. CIE operates Centro Citibanamex, a convention and
conference venue in Mexico City,
as well as the El Salitre Magico amusement park in Colombia. Likewise, the Company produces
corporate events for the public sector. CIE promotes and markets
the Formula 1 Mexican Grand Prix.
About Televisa
Televisa is a leading media
company in the Spanish-speaking world, an important cable operator
in Mexico and an operator of a
leading direct-to-home satellite pay television system in
Mexico. Televisa distributes the
content it produces through several broadcast channels in
Mexico and in over 70 countries
through 27 pay-tv brands, television networks, cable operators and
over-the-top or "OTT" services. In the
United States, Televisa's audiovisual content is distributed
through Univision Communications Inc. ("Univision"), a leading
media company serving the Hispanic market. Univision broadcasts
Televisa's audiovisual content through multiple platforms in
exchange for a royalty payment. In addition, Televisa has equity
representing approximately 36% on a fully-diluted basis of the
equity capital in Univision Holdings II, Inc., the controlling
company of Univision. Televisa's cable business offers integrated
services, including video, high-speed data and voice services to
residential and commercial customers as well as managed services to
domestic and international carriers. Televisa owns a majority
interest in Sky, a leading direct-to-home satellite pay television
system and broadband provider in Mexico, operating also in the Dominican Republic and Central America. Televisa also has interests
in magazine publishing and distribution, professional sports and
live entertainment, feature-film production and distribution, and
gaming.
About OCESA Entretenimiento
One of the most prominent
live events businesses globally, OCESA promotes more than 3,100
events for nearly 6 million fans annually across Mexico and Colombia and has a robust business portfolio
in ticketing, sponsorship, food & beverage, merchandise, and
venue operation with 13 premier venues across Mexico with a collective capacity of nearly
250,000 seats. OCESA's primary ticketing business, Ticketmaster
Mexico, is a leading ticket company in Mexico.
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SOURCE Live Nation Entertainment