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The value of Live Nation Entertainment shares has hit a record high, as buzz builds in Wall Street over a rumoured merger with Liberty Media's SiriusXM
By IQ on 10 Jul 2018
The price of a single Live Nation share has risen above US$50 for the first time, amid speculation by Wall Street analysts that the concert giant could be the target of an acquisition by satellite radio provider SiriusXM.
Shares in Live Nation (LYV) have grown at a remarkable rate throughout 2017 and 2018, reaching $40 in August 2017 – just six months after passing the $30 mark – although the price dipped 13% earlier this year after a New York Times article claimed the company was being investigated by the US Department of Justice for alleged anti-competitive behaviour.
It has since rebounded from a six-month low of $36, bolstered by positive indications for 2018, a recent run of acquisitions and the potential for a SiriusXM takeover, suggests Citigroup analyst Jason Bazinet.
According to financial services company the Motley Fool, “the biggest driver of market buzz came from analyst firm Citigroup suggesting that Sirius XM Holdings might want to buy out Live Nation someday soon.”
Combining Live Nation/Ticketmaster and SiriusXM, says Bazinet, would create a “vertically integrated music titan”
SiriusXM parent company Liberty Media – which owns roughly a third of Live Nation – has been vocal about the synergies between combining Live Nation/Ticketmaster and SiriusXM, says Bazinet, which would create a “vertically integrated music titan”.
Additionally, he says, the merger would face fewer regulatory challenges than the joining together of Live Nation and Ticketmaster, as the companies operate in different sectors of the music business.
However, Sebastiano Petti, an analyst at JPMorgan, suggests a deal is unlikely, noting that Liberty has talked about synergies between the companies previously without launching an acquisition bid.
At press time, Live Nation’s share price stood at $49.82.
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