Mexico's Inter-American Entertainment Corporation, which had agreed to sell its 11% stake in Ocesa, first revealed that Live Nation has called time on the deal
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The US concert giant has revived a pre-pandemic deal to acquire 51% in Mexico-based Ocesa, the third-largest promoter in the world
By IQ on 13 Sep 2021
Live Nation has resumed its acquisition of Ocesa, the third-largest promoter in the world and the parent company of Ticketmaster Mexico.
The US$444 million deal, if completed, would give the world’s largest live entertainment company a 51% stake in one of its largest competitors, which dominates the Latin American market.
The acquisition, which was paused due to the pandemic, is now expected to close by late 2021 or early 2022, subject to regulatory approval.
Live Nation originally agreed to buy 51% of Ocesa for over $400m in summer 2019 but pulled out of the deal in May last year, just a month after Mexican competition regulators approved the deal.
Following the termination of the deal, Live Nation CEO Michael Rapino said that he was “long term, still bullish on [Ocesa’s] business and ours” but that Live Nation was “not looking to take on any losses from Mexico while they’re going through their six or eight months of business downturn”.
“Ocesa will play a pivotal role in putting together many incredible shows in Mexico and the rest of Latin America”
The joint sellers of the stake are the Inter-American Entertainment Corporation (Corporación Interamericana de Entretenimiento, or CIE) and Grupo Televisa, a media giant in the Spanish-speaking world.
Live Nation is reportedly buying a 40% stake in Ocesa from Grupo Televisa, and 11% of the concert promoter from CIE.
CIE will hold on to the remaining 49% minority stake in Ocesa. Live Nation is expected to hold back 7% of the closing price to cover any potential operating losses for several quarters.
“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,” says 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.”
“This deal gives us a unique opportunity to continue Ocesa’s 30-year contribution to the development of the Mexican live sector”
Alejandro Soberón Kuri, president and CEO of CIE, added: “We are extremely proud to finally join Live Nation. 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.
Ocesa promotes more than 3,100 events for nearly six million fans annually across Mexico and Colombia and has a robust business portfolio in ticketing, sponsorship, food & beverage, merchandise, and venue operation – including 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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