Live Nation makes it six acquisitions in under five months with the purchase of a majority stake in South America's biggest music festival
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LN will buy out Brazilian promoter IMM to increase its stake in Rock City/Rock in Rio to a reported 60%, consolidating its ownership of South America's biggest festival
By Jon Chapple on 04 Jul 2019
Live Nation has confirmed to IQ it is to increase its shareholding in Rock in Rio to a majority stake.
The US concert giant bought into Rock City – the company behind the 100,000-capacity flagship festival in Rio de Janeiro, Brazil, and its 80,000-cap. Lisbon sister event – in May 2018, taking over the minority share formerly held by SFX/LiveStyle. At the time, Live Nation said it aimed to become the controlling shareholder by 2019.
It now appears to be putting those plans in motion by acquiring the 20% stake held by Brazil-based, Abu Dhabi-owned entertainment and sports promoter IMM (formerly IMX). A buy-out is “in process”, subject to regulatory approvals, according to a Live Nation spokesperson.
A buy-out is in process, subject to regulatory approvals
IMM and Live Nation clashed in court late last year, with LN appealing after a Rio judge suspended the sale of Rock in Rio after protests by IMM.
Live Nation declined to comment on pricing, but a report in the Global Legal Chronicle puts the value of the Live Nation–IMM deal at US$20 million and Live Nation’s new shareholding at 60%.
Rock in Rio founder Roberto Medina will reportedly retain a 40% stake after LN’s buy-out of IMM, and continue to manage the festivals.
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