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Live Nation to acquire IMM’s share of Rock in Rio

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

A capacity crowd at Rock City/IMM's Rock in Rio Lisboa (Lisbon) 2018

A capacity crowd at Rock in Rio Lisboa (Lisbon) 2018


image © Rock in Rio

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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