Live Nation Entertainment

Live Nation Entertainment, Inc is an American global entertainment company, founded in 2010, following the merger of Live Nation and Ticketmaster. The company promotes, operates, and manages ticket sales for live entertainment in the United States and internationally. It also owns and operates entertainment venues, and manages the careers of music artists.

Live Nation Entertainment, Inc.
TypePublic
IndustryEntertainment
FoundedJanuary 25, 2010 (2010-01-25)
Headquarters
Beverly Hills, California
,
U.S.
Area served
Worldwide
Key people
Services
Revenue US$11,548 million (2019)[1]
US$325 million (2019)[1]
US$70 million (2019)[1]
Total assets US$10,976 million (2019)[1]
Total equity US$1,464 million (2019)[1]
OwnerLiberty Media (32.4%)[2]
Number of employees
10,500 (December 2019)[1]
SubsidiariesRoc Nation
Ticketmaster
Live Nation Concerts
Front Line Management Group
Live Nation Network
C3 Presents
AC Entertainment
Live Nation Merchandise
Websitelivenationentertainment.com

History

In 2009, Live Nation and Ticketmaster, a concert promotion firm and ticketing company, reached an agreement to merge. The new company received regulatory approval and was named Live Nation Entertainment.[3][4] Michael Rapino, then-CEO of Live Nation, became the new company's CEO, while Ticketmaster CEO Irving Azoff was named executive chairman.[5]

The merger was approved first in Norway and Turkey in 2009.[6] The United Kingdom's Competition Commission provisionally ruled against the merger,[7] but reversed its decision on December 22, 2009.[6]

The merger was opposed in the U.S. by some regulators, artists, fans, and competing firms, who argued it would reduce competition in the industry and increase ticket costs.[8][9] Artist Bruce Springsteen was one vocal opponent of the merger at the time.[10]

On January 25, 2010, the United States Justice Department approved the merger pending certain conditions.[11] Ticketmaster had to sell ownership of its self-ticketing company, Paciolan,[11] and license its software to Anschutz Entertainment Group (AEG), which would allow it to compete "head-to-head" with Ticketmaster for business.[12][13] AEG was given the option after five years to buy the software, replace it with something else, or partner with another ticketing company.[12] Additionally, Live Nation Entertainment was placed under a 10-year court order prohibiting it from retaliating against venues that choose to accept competing ticket contracts.[13]

Investments and growth

In 2013, the company acquired the Voodoo Music + Arts Experience and announced a joint venture with Insomniac Events, a promoter focused on electronic dance music.[14][15][16] The company later acquired C3 Presents (2014),[17] Bonnaroo Music and Arts Festival (2015),[18] and Founders Entertainment (2016), the parent company of Governors Ball Music Festival.[19] In October 2016, Live Nation Entertainment bought AC Entertainment, a Knoxville Tennessee music company,[20] as well as several international companies.[21] The company continued to invest in music festivals and promoters in 2017, purchasing a controlling interest in BottleRock Napa Valley Music Festival,[22] Salt Lake City-based concert promoter United Concerts,[23] and CT Touring.[24] In 2017, Live Nation Entertainment reported revenue of $10.3 billion.[25][26] In 2018, the company expanded its concert promotion segment by acquiring a majority stake in a number of companies including Frank Productions,[27] Emporium Presents,[28] and Red Mountain Entertainment.[29]

Also in 2018, the United States Department of Justice launched an investigation following complaints by AEG that Live Nation pressured them into using Ticketmaster and intentionally avoided booking acts for AEG venues.[30] Live Nation stated that decisions in selecting venues were not punitive, and were instead based on size and management.[30]

Live Nation Entertainment has acquired a majority stake in the David Grutman owned Groot Hospitality, a Miami-based company. The portfolio includes LIV nightclub located inside the historic Fontainebleau Hotel, which opened in 2008 as host to the annual Victoria's Secret Fashion Show in 2008. The portfolio includes restaurants and nightlife venues, to include Story (2012), Komodo (2015), Swan & Bar Bevy with Pharrell Williams(2018) and Papi Steak (2019).[31]

In 2020, Live Nation was hit particularly hard by the novel coronavirus pandemic, with essentially all concerts and sporting events around the world on hold. The company has been sued as it has been reluctant to offer full refunds to customers, though it has since amended its refund rules to address those complaints.

The government of Saudi Arabia's sovereign wealth fund has acquired a 5.7 percent stake in Live Nation, the parent company of Ticketmaster.Based on Live Nation's share prices as of 28 April 2020, the investment is valued at just shy of $500 million.[32] The investment is passive, and was purchased on the open market. The Saudi Public Investment Fund is now the company's third-largest shareholder, with John Malone's Liberty Media the largest individual shareholder with a 33 percent stake.[33]

Operating divisions

Live Nation Entertainment's business segments are concerts, ticketing, and sponsorship and advertising.[25] The company promotes and operates live music events and manages artists under its concerts division Live Nation Concerts.[25] Live Nation Entertainment's artist management arm, called Artist Nation, is included within its concerts division[34][25] and also includes Front Line Management and Roc Nation.[35] Live Nation Entertainment owns and operates venues, including the House of Blues.[36] The company sells tickets to live events through Ticketmaster.[25]

International

In 2012, the company announced a partnership with Creativeman Productions, based in Tokyo, Japan.[37]

In June 2013, Live Nation was among those charged with violating Ontario health and safety laws following a stage collapse at a Radiohead concert that killed one crew member.[38][39] A 2019 inquest returned a verdict of accidental death.[40]

In August 2015, Live Nation announced it would form Live Nation Germany, to be created in partnership with German promoter Marek Lieberberg. Live Nation Germany would also have oversight over Live Nation events in Austria and Switzerland.[41]

In March 2016, Live Nation acquired Big Concerts International, South Africa's leading concert promoter.[42] The following year, the company acquired majority interests in Israeli promoter Blue Stone Entertainment and the UK's Cuffe & Taylor.[21]

In May 2018, Live Nation Entertainment acquired a majority stake in Brazil's Rock in Rio festival (including from previous stakeholder SFX Entertainment), with its founder Roberto Medina continuing to manage the festival's operations, and providing consulting to Live Nation.[43][44]

References
  1. "2019 FORM 10-K, LIVE NATION ENTERTAINMENT, INC" (PDF). Retrieved 11 June 2020.
  2. "Live Nation Entertainment, Inc. 2020 Proxy statement". Retrieved 2020-08-12.
  3. Nicholson, Chris V. (22 December 2009). "British Regulator Supports Live Nation-Ticketmaster Merger" – via NYTimes.com.
  4. "Live Nation, Ticketmaster merger official". The Hollywood Reporter. Retrieved 2019-07-16.
  5. "Live Nation to buy Ticketmaster". Reuters. 2009-02-10. Retrieved 2019-07-16.
  6. Kreps, Daniel (2009-12-22). "Live Nation-Ticketmaster Merger Approved in U.K." Rolling Stone. Retrieved 2019-07-16.
  7. Van Buskirk, Eliot (October 12, 2009). "Live Nation/Ticketmaster Merger Faces Obstacles Here and Abroad". Wired. Retrieved 2009-10-19.
  8. Kreps, Daniel (2009-02-04). "Bruce Springsteen "Furious" At Ticketmaster, Rails Against Live Nation Merger". Rolling Stone. Retrieved 2019-07-16.
  9. Branch, Alfred Jr. (January 19, 2010). "Ticketmaster / Live Nation merger: 25,000 contact DOJ to oppose the deal". TicketNews. Archived from the original on January 22, 2010. Retrieved January 26, 2010.
  10. "Bruce Springsteen "Furious" At Ticketmaster, Rails Against Live Nation Merger". Rolling Stone. February 4, 2009. Retrieved 2009-10-19.
  11. Chmielewski, Dawn C. and Fritz, Ben and Lewis, Randy (January 26, 2010). "Ticketmaster-Live Nation merger gets Justice Department's approval". The Los Angeles Times. Retrieved January 26, 2010.CS1 maint: multiple names: authors list (link)
  12. Van Buskirk, Eliot (January 25, 2010). "DOJ Approves Modified Ticketmaster, Live Nation Merger". Wired News. Retrieved January 26, 2010.
  13. Sisario, Ben (2010-01-25). "Justice Dept. Clears Ticketmaster-Live Nation Merger". The New York Times. ISSN 0362-4331. Retrieved 2019-07-16.
  14. "Electronic Daisy Chain". Spin. Retrieved 2018-08-11.
  15. "Live Nation Teams With Insomniac Events in 'Creative Partnership'". Billboard. Retrieved 2018-08-11.
  16. "Live Nation Acquires Voodoo Music & Arts Experience in New Orleans". Billboard. Retrieved 2018-10-15.
  17. "Live Nation Completes Deal for C3 Presents". Billboard. Retrieved 2017-10-28.
  18. Faughnder, Ryan. "Live Nation Entertainment buys controlling stake in Bonnaroo festival". latimes.com. Retrieved 2019-07-17.
  19. "Live Nation Adds Governors Ball to Its Music Festival Lineup". NYTimes. Retrieved 2018-10-15.
  20. "Live Nation buys AC Entertainment". The Tennessean. Retrieved 2016-11-16.
  21. "Live Nation acquires majority stake in Israel's Bluestone Entertainment - Music Business Worldwide". Music Business Worldwide. 2017-02-07. Retrieved 2017-12-12.
  22. "Live Nation acquires major stake in BottleRock festival". SF Chronicle. Retrieved 2018-08-11.
  23. Fox, Doug. "Live Nation acquires Salt Lake's United Concerts". Daily Herald. Retrieved 2019-07-17.
  24. "Live Nation acquires CT Touring". IQ Magazine. 2017-01-20. Retrieved 2019-07-17.
  25. "Live Nation Vertically Integrates to Corner the Live Events Industry -". The Motley Fool. 2018-09-13. Retrieved 2019-07-16. |first= missing |last= (help)
  26. "Live Nation Reports Over $10 Billion in Revenue in 2017 Financial Earnings". Amplify. 2018-02-27. Retrieved 2019-07-17.
  27. "Live Nation Acquires Frank Productions: Exclusive". Billboard. Retrieved 2019-07-17.
  28. "Live Nation Acquires Emporium Presents". Billboard. Retrieved 2018-12-12.
  29. Colurso, Mary (2018-06-27). "Live Nation buys Red Mountain Entertainment, Birmingham's largest concert promoter". al.com. Retrieved 2019-07-17.
  30. Sisario, Ben; Bowley, Graham (1 April 2018). "Live Nation Rules Music Ticketing, Some Say With Threats". Retrieved 10 June 2019 – via NYTimes.com.
  31. "Live Nation Acquires David Grutman's Groot Hospitality". Billboard. Retrieved 2019-10-21.
  32. Littleton, Jem Aswad,Cynthia; Aswad, Jem; Littleton, Cynthia (2020-04-27). "Saudi Arabia's Public Investment Fund Acquires $500 Million Stake in Live Nation". Variety. Retrieved 2021-01-13.
  33. Turak, Natasha (2020-04-27). "Saudi Arabia buys $500 million stake in coronavirus-hit Live Nation, stock jumps nearly 10%". CNBC. Retrieved 2021-01-13.
  34. "Live Nation companies now manage over 500 artists worldwide". Music Business Worldwide. 2017-02-27. Retrieved 2019-07-16.
  35. "Jay Z, Live Nation Enter Into New Long Term Deal, Continue Roc Nation Partnership: Exclusive". Billboard. Retrieved 2019-07-17.
  36. Leeds, Jeff (2006-07-06). "Big Promoter of Concerts to Acquire House of Blues". The New York Times. ISSN 0362-4331. Retrieved 2019-07-17.
  37. "Live Nation Shrinks Loss, Announces Asian Partnership | Los Angeles Business Journal". labusinessjournal.com. Retrieved 2019-07-17.
  38. "'I feel so let down by Canada': Radiohead and drum tech's parents demand answers in his Toronto death". CBC News. Retrieved 2017-11-30.
  39. "Live Nation, engineer charged in Radiohead stage collapse". CBC News. 7 June 2013. Retrieved 8 June 2013.
  40. "Radiohead stage death inquest ends". 2019-04-11. Retrieved 2019-07-17.
  41. "Live Nation Launches German Arm, Appoints Respected Promoter Marek Lieberberg to Lead". Billboard. Retrieved 2018-10-15.
  42. "Live Nation acquires leading South Africa concert promoter". BizJournals. Retrieved 2018-10-15.
  43. "Live Nation Acquires Rock in Rio Festival". Billboard. Retrieved 2018-12-11.
  44. "Live Nation Acquires Rock in Rio Festival". Variety. 2018-05-02. Retrieved 2018-12-11.
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