Deutsche Entertainment (DEAG) CEO Detlef Kornett has spoken to IQ about the firm’s latest acquisition and how it fits into a wider expansion strategy.

Today, the Berlin-based live entertainment giant announced its first foray in Italy with the acquisition of Milan-based rock promoter MC² Live.

MC² Live was launched after the company’s founders, Andrea and Stefano Pieroni, sold a 51% stake in their former business, Vertigo, to CTS Eventim in 2017.

DEAG says the brothers will continue to manage MC² Live in the long term together with their team, who will all remain with the company.

Speaking about his admiration for the company’s leader, Kornett told IQ: “Andrea has been in the industry for decades and has a very impressive roster of artists and bands that he works with internationally, as well as Italian-language acts.”

“We have had a very impressive growth curve and I believe this acquisition will help us to continue on that path”

Over the past few decades, the stalwart promoter has organised numerous concerts, festivals and events with stars such as Judas Priest, Slipknot, Rammstein, 50 Cent, Ne-Yo, Eros Ramazzotti and Negrita.

“MC² are of a certain size already so this is a very important step for DEAG where we can really funnel growth, and that’s what DEAG has been all about these years,” says Kornett. “We have had a very impressive growth curve and I believe this acquisition will help us to continue on that path.”

Indeed, DEAG has been on an acquisition spree in the past 12 months, entering the Spanish market in late 2023 with the launch of subsidiary Get Rock Live (GRL) and acquiring three companies in the first six months of 2024. With the acquisition of MC² Live, DEAG is now present in Germany, the UK, Switzerland, Ireland, Denmark, Spain and Italy.

“Benelux, The Netherlands is an obvious gap in our marketplace, and at the same time it’s not an easy market – it’s set in a certain way – so the right opportunity would need to arise for us to expand there,” explains Kornett. “That doesn’t mean that we’re not in conversations, it is just not right yet.”

Though the company is bullish in its international expansion, Kornett insists that being a pan-European company is not the main goal.

“Obviously, there are still so many white spots for DEAG on the European map and we will continue to explore those opportunities”

“Obviously, there are still so many white spots for DEAG on the European map and we will continue to explore those opportunities but the partnership has to fit,” he explains.

“The importance is really on the people, the way they conduct business and relationships, and the fit. The way Andrea maintains his relationships, the way he budgets for his events, the way he settles his events fits very well with us.”

Kornett says he’s excited to capitalise on the opportunities available in the Italian live music market alongside MC².

“There’s a huge opportunity for international rock and pop in the market and the Italian language music sector is very important and very big, but it’s also very divided between some major players,” he says.

“There are only very few independents left but now Andrea has a strong partner to continue to be independent in that market. Italy is no different to the UK or Germany, there are opportunities for independent, boutique-type promoters like us, and we intend to take full advantage of that.”

DEAG has set its sights on becoming “a company with more than €500 million in revenues”

The company has already shared ambitions to take some of its pre-existing event brands to the Italian market and introduce some new ones.

“MC² and Andrea have traditionally been focused on Italian artists and international rock and pop,” he says, nodding to the firm’s upcoming shows with Iron Maiden, Pantera, Skunk Anansie and Falling in Reverse.

“I think there are elements within rock that we can add but we would look for synergies the other way. We do all kinds of events in the non-music sector from the spoken word events to the light trails to the family shows to the classical music to jazz. – so we will explore all of these opportunities. Is the market ready for it? Does it work? If it works, then let’s give it a shot!”

While DEAG continues to expand in Europe, the firm has set its sights on becoming “a company with more than €500 million in revenues”. Its highest-ever revenue was €325 million in 2022.

“We will go some way towards that goal in 2025 but it’s more of a three-year plan,” says Kornett. “It’s all in the bottom line, so we have to find the right balance in our portfolio in order to achieve that. We’ve been at 8–9% margin – another thing we hope to grow next year. This year nothing was easy but I generally feel that the business will be in a better flow in 2025.”

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CTS Eventim is to acquire a majority stake in Milan-based promoter Vertigo, marking its entry into the Italian live entertainment market.

The acquisition of 51% of Vertigo bolsters CTS’s presence in Italy, where the German ticketer/promoter already owns TicketOne, one of Italy’s two main ticketing companies (along with Best Union’s Vivaticket).

Vertigo will continue to be led by co-founders Andrea and Stefano Pieroni – although CTS gains two seats on its management board, and the company will be “fully consolidated” into its Medusa Music Group division.

“Italy is already one of the most important markets for our company, so entering the live entertainment segment there is a logical step in our ongoing internationalisation,” comments CTS Eventim CEO Klaus-Peter Schulenberg. “I am all the more delighted by the fact that, by acquiring the stake in Vertigo, we are also taking on board a highly creative, fast-growing and superbly managed promoter.”

The acquisition, the terms of which are finalised but were not disclosed, means CTS Eventim now promotes shows in eight countries – Germany, Austria, Switzerland, Denmark, Sweden, Finland and the Netherlands and Italy – in addition to selling tickets in 25.

“The partnership with CTS Eventim is a milestone for Vertigo and will help us take the next step forwards in our development”

Vertigo was already a partner of TicketOne, which was earlier this year fined €1m after it emerged tickets has been passed directly to the secondary market.

Vertigo CEO Andrea Pieroni says: “The partnership with CTS Eventim is a milestone for Vertigo and will help us take the next step forwards in our development. We want to enlarge our portfolio even further over the next few years and offer a creative and service-centred base to different styles of artists from Italy and abroad.

“The fact that CTS Eventim will be supporting us from now on with its resources and its unique expertise is an enormous boost for our team and our partners.”

Upcoming shows for Vertigo include Alice Cooper, The Darkness (pictured), Caparezza, Marilyn Manson and Him.

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