Live Nation acquires Colombia’s Páramo Presenta
Live Nation has expanded its presence in Latin America by acquiring a majority stake in leading Colombian promoter Páramo Presenta.
The deal was executed via Mexico’s Ocesa, in which LN secured a controlling interest in December 2021.
Páramo is best known for its flagship four-day event Estereo Picnic, the biggest music festival in Colombia. Held in Bogotá, its most recent edition in March was headlined by Twenty One Pilots, The Chemical Brothers, Drake and Billie Eilish.
The firm’s festival portfolio also includes Bogotá’s Baum Festival and Knotfest.
“Páramo is fresh off of a record year and their team are some of the best in the business,” says Live Nation president and CEO Michael Rapino. “Colombia is a booming market, and we’re looking forward to working with our new partners at Páramo and longtime partners OCESA as we continue our expansion across Latin America.”
“We are excited to build upon our deep relationship with Live Nation, and welcome Páramo as a partner,” adds Ocesa CEO Alejandro Soberón Kuri. “Together, we will continue to elevate the live entertainment landscape in Latin America, adding Páramo’s top festivals and concert roster to Ocesa’s large scale events in Colombia.”
“Almost 20 years ago, we embarked on this journey because we saw the opportunity to bring more artists we love to Colombia”
All future events will be ticketed through Ocesa’s Colombian ticketing entity Eticket as part of the partnership.
“Almost 20 years ago, we embarked on this journey because we saw the opportunity to bring more artists we love to Colombia,” says Páramo Presenta CEO Gabriel García.
“After being raised in an era with very few shows in the country, and being part of an exponential rise of live music, today we celebrate this historic merge with Live Nation and Ocesa, two of the most important entertainment companies in the world, with the firm conviction that it will propel us to new heights and provide even more unforgettable moments between artists and fans, becoming a key part of the country’s growth and strengthening our market to be increasingly competitive on the global stage of live entertainment.
“All of this was made possible thanks to the public and the sponsors who have believed in and supported our work.”
Live Nation’s Ticketmaster business recently strengthened its foothold in Latin America by launching new operations in Brazil and Peru, adding to its existing operations in Argentina, Mexico and Chile. LN’s C3 Presents and Rock City also took control of Lollapalooza Brazil earlier this year.
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Ticketmaster and Ocesa face class action lawsuit
Mexico’s federal consumer protection office Profeco has reported that a Mexico City judge has admitted a class action lawsuit against Ticketmaster and promoter Ocesa.
The Live Nation companies are subject to multiple claims from consumers that have accumulated since 2021, alleging various breaches such as unilateral cancellation of tickets, breach of conditions and refusal to give full refunds, including service charges.
The Ninth District Judge in Civil Matters of the country’s capital, Guillermo Campos Osorio, described the lawsuit filed by Profeco as “admissible” and gave the green light to the collective action, which currently represents 521 consumers.
“These situations reflect a general breach in the provision of the entertainment service regarding various musical, cultural, sporting, artistic and recreational events, violating the rights of consumers,” reads a Profeco press release.
“This collective action is a watershed in the defence of the right to use, enjoy and enjoy cultural and entertainment services, endorsing Profeco’s commitment to eradicate abuses and asymmetries by these service providers.”
Profeco is inviting other affected consumers to come forward and join the class action lawsuit
The organisation is inviting other consumers “affected or affected by the cancellation of your tickets, denial of access or refund of your money for the cancellation to attend any cultural, sports or entertainment event during the period from 2021 to date” to come forward and join the lawsuit.
Earlier this year, Ticketmaster Mexico provided refunds and additional compensation after more than 2,000 fans were denied entry to a Bad Bunny concert at Mexico City’s Azteca Stadium.
The company reported that problems occurred “due to failures in its ticket reading system” at the first of two dates at the venue by the Puerto Rican rapper, in addition to “an unprecedented number of fake tickets”. Ticketmaster avoided being fined as it has refunded the full price of the ticket, plus 20% compensation, to those affected, with the total amounting to almost 18.2 million pesos (€914,000).
Ticketmaster Mexico announced the appointment of Ana María Arroyo as its new director, replacing the long-serving Lorenza Baz, in the wake of the controversy.
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Ocesa director on what’s next for Latin America
Ocesa festival director Leizer Guss has spoken to IQ about the explosive growth of Latin music in 2022 and what’s next for the genre.
Recent news of Puerto Rican rapper Bad Bunny becoming the highest-grossing touring artist in a calendar year was the cherry on top of a year that has seen Latin stars break records across the board but as Guss points out, none of it happened overnight.
“I think it’s just the product of all the hard work all of the teams and artists have put in over the years,” he tells IQ. “It’s definitely not an overnight success, it’s just a matter of working effectively on the songs, live shows, albums and concepts and connecting with people.”
Though Bad Bunny has undoubtedly stolen the show in 2022, there are a number of Latin artists that are hot on his heels.
Karol G, Tiago PZK, Quevedo and Eladio Carrion are all contenders to be Latin America’s next superstar, according to the likes of Bruce Moran (Live Nation Latin America) and Phil Rodriguez (Move Concerts) and Guss has his own opinions.
“If I had to speculate I would say Rauw Alejandro. He has a unique energy, voice, vibe and an amazing team around him. We started working with him at Coca-Cola Flow Fest many years and are very excited and happy about the way he has grown as a live performer and artist.”
“I think there will at least be another wave of headliners that grow before the sound plateaus”
Coca-Cola Flow Fest takes place annually in Mexico City and is Ocesa’s flagship festival for the Latin urban sound. The last edition took place in November with headliners J Balvin, Anuel AA, Don Omar and Nicky Jam but it’s the artists slightly lower on the bill that Guss is excited about.
“Our Coca-Cola Flow Fest properties still have a very strong middle line and I think there will at least be another wave of headliners that grow before the sound plateaus,” he says.
“And I think the bonafide artists that come from the scene will keep pushing boundaries, exploring new sounds and recruiting new fans. I think it’s truly remarkable how most of the scene sticks together as if they truly understand that someone else’s success will pave the way for their own through collaborations and features.”
Alongside Coca-Cola Flow Fest, Ocesa’s festival portfolio includes Corona Capital, Electric Daisy Carnival (EDC) Mexico, Live Latino, Imperial GNP and new festival The World Is A Vampire.
“Almost all of my festivals on sale are well and healthy… for now it looks like 2023 will be a good year,” says Guss. “The business grew in 2022 and I think 2023 will bring an opportunity to consolidate festival fans and try to convince them to mix their musical taste and try new things.”
As for the challenges that lie ahead, Guss says that Live Nation-owned Ocesa, which also owns Ticketmaster Mexico, is prepared for what’s in store.
“2022 was a record year because of the high amount of acts that hadn’t toured and the ‘thirst’ the fans had for gathering, celebrating and enjoying life,” he says. “As the industry levels again we will find where new consumption trends, the economy and the supply of touring artists leave us. We’re up to the challenge for sure.”
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Rock fest boom continues with new Ocesa event
Ocesa is the latest promoter to capitalise on a renewed demand for rock music with a new festival called The World Is A Vampire.
The Mexico City festival is curated in partnership with Billy Corgan of The Smashing Pumpkins, with the band headlining the 4 March 2023 event.
Interpol, Turnstile, Peter Hook & The Light, DeafHeaven and The Warning are also slated to perform at the first edition, taking place in Ocesa’s Foro Sol (cap. 65,000) stadium.
They will be joined by Ekkstacy, Chelsea Wolf, Margaritas Posridas, In The Valley below, El Shirota and Acid Waves.
“Mexico City will be covered by a deep and dark night, night owls will congregate in a feast of music and good rock, which will mark the beginning of a quasi-twilight celebration,” reads a statement from Ocesa, which is Latin America’s largest promoter, now owned by Live Nation.
Live Nation is behind a slate of new rock-focused festivals announced in the last 12 months
Live Nation is behind a slate of new rock-focused festivals announced in the last 12 months.
Most recently, LN subsidiary C3 Presents announced a brand new US festival for hard rock and alternative music fans called Sick New World. System Of A Down, Korn, Deftones and Incubus are set to headline the one-day event, taking place on May 13 2023 at Las Vegas Festival Grounds.
Prior to that, the live entertainment giant unveiled a new alternative music festival for Atlantic City, New Jersey (US), called Adjacent. Blink-182 and Paramore will headline the all-ages event, slated for 27 & 28 May 2023 (Memorial Day Weekend).
These two new festivals came after Live Nation premiered “emo nostalgia” festival When We Were Young in October at Las Vegas Festival Grounds with headliners Paramore and My Chemical Romance.
The 85,000-cap “emo nostalgia” festival was expanded to three days due to demand, and the 2023 edition sold out before the 2022 event had even started.
Next year’s instalment features a pop-punk twist featuring headliners Blink-182 and Green Day, who will be joined by the likes of 30 Seconds To Mars, The Offspring, Good Charlotte, 5 Seconds of Summer and All Time Low, Yellowcard, Rise Against, Sum 41, Pierce the Veil, Gym Class Heroes, Michelle Branch, Thrice, Rise Against, Simple Plan and New Found Glory.
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Ticketmaster grows presence in Mexico, Chile
Ticketmaster, the world’s largest ticketer, is expanding its presence in Latin America with new operations in Mexico and Chile.
The news comes shortly after Ticketmaster parent company Live Nation acquired Ocesa Entretenimiento, the third-largest promoter in the world and the parent company of Ticketmaster Mexico.
Under the new ownership structure, Ticketmaster Mexico will transition from a licensing agreement to integrating operations with the broader organisation.
According to Ticketmaster, the move will enable the Mexican business to gain access to the company’s full suite of technology, products and services.
“”Latin America is an incredibly important live entertainment market and a core focus of our global expansion efforts”
In Chile, where Ticketmaster will launch for the first time, the initial market focus will be on increasing digital ticketing use.
Chile and Mexico are the latest markets to be added to Ticketmaster’s Latin American portfolio, which already includes Argentina and Brazil.
The company has long had a foothold in Argentina, delivering ticketing services for several venues and festivals.
While in Brazil, the company focuses on supporting Live Nation’s Rock in Rio music festival and touring business, with plans to bring its digital ticketing technology to the market in 2022.
“Latin America is an incredibly important live entertainment market and a core focus of our global expansion efforts,” says Mark Yovich, Ticketmaster president. “The region has become an important destination for global touring artists, and we have also seen significant growth in venue and festival activity over the last several years.
“Bringing Mexico into the fold and launching in Chile is such a positive way to finish off the year. We look forward to working with our strong base of partners to elevate the fan experience and further our support of the region.”
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Live Nation completes Ocesa acquisition
Live Nation yesterday (6 December) announced the completion of its previously announced acquisition of Ocesa Entretenimiento, the third-largest promoter in the world and the parent company of Ticketmaster Mexico.
The US$444 million deal gives the world’s largest live entertainment company, Live Nation, a 51% stake in one of its largest competitors, which dominates the Latin American market.
The deal comprises a 40% stake in Ocesa, which Live Nation acquired from Grupo Televisa, and an 11% share from Corporacion Interamericana de Entretenimiento’s (CIE).
Live Nation will hold back 7% of the closing price to cover any potential operating losses for several quarters.
The entertainment giant originally agreed to buy 51% of Ocesa for over $400m in summer 2019 but pulled out of the deal in May last year, before resuming the acquisition in September.
“As we continue to bring shows back around the world, we’re excited to officially welcome Ocesa into Live Nation,” says Michael Rapino, president and CEO, Live Nation Entertainment.
“As we continue to bring shows back around the world, we’re excited to officially welcome Ocesa into Live Nation”
“Alex and the Ocesa team are incredible at what they do and together we look forward to creating even more amazing live experiences across Mexico and Latin America.”
Alejandro Soberón Kuri, chairman of the board and COO of CIE, added: “This strategic agreement extends the already successful relationship we have with Live Nation and we are very proud to take it to the next level.
“We are very excited to finally join forces with Michael and his team. Together with the world leader, we will continue to add value and growth to the business, bringing the best entertainment to Mexico and Latin America.”
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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Live Nation resumes acquisition of Ocesa for $444m
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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Ocesa spearheads Colombia’s first drive-in shows
Colombian promoters Ocesa Colombia and Páramo Presenta have announced the country’s first drive-in concerts.
The shows, staged in partnership with Live Nation, will be held in the car park of the Salitre Mágico theme park in Bogota. Organisers expect the first concerts, which will include a range of artists and genres, to take place in early October, Páramo Presenta’s Sergio Pabón tells radio show La W.
Initially only open to cars, the shows will be opened up to motorbikes towards the end of the year, he adds.
In Colombia, concerts and other large events are excluded from a loosening of coronavirus restrictions scheduled for 30 September.
“We want fans to enjoy the music and have fun from their vehicles”
Ocesa Colombia’s Luz Ángela Castro says there will capacity for 290 vehicles, “with a minimum of two people in the car and a maximum of four”.
The promoters expect to announce dates and an initial line-up next month. “We have complied with what the public asks of us, and that is also what we want: That fans enjoy [the music] and have fun from their vehicles,” adds Ángela Castro. “Now the public must help us” by buying tickets, he says.
The first drive-in shows in Latin America took place in Puerto Rico in July, courtesy of Move Concerts, closely followed by similar events in Mexico.
Ocesa Colombia’s Mexico-based parent company, Ocesa, was supposed to have been acquired by Live Nation this year. However, the deal was controversially called off in May after LN, reeling from the effects of the Covid-19 pandemic, said it could not agree revised terms with Ocesa owners CIE and Televisa Group.
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Live Nation pulls out of Ocesa acquisition [updated]
Updated (27 May): Live Nation confirmed in an SEC filing yesterday that the company has terminated its ‘material definitive agreement’ to acquire 51% of Ocesa after being unable to agree revised terms with CIE and Televisa.
“On May 25, 2020, Live Nation notified CIE that it was terminating the CIE purchase agreement as a result of CIE’s failure to comply with its contractual obligation to continue operating the target companies [Ocesa] in the ordinary course of business and the occurrence of a material adverse effect (as that term is defined in the CIE purchase agreement),” reads the 8-K form, dated 25 May, which appears to say CIE and Televisa’s failure to keep Ocesa operating as normal amid the ongoing coronavirus pandemic is grounds for cancelling the acquisition.
“Live Nation simultaneously notified TV that it was terminating the TV purchase agreement, which agreement may be terminated if the CIE Purchase Agreement is terminated for any reason.
“Live Nation has commenced binding arbitration proceedings, seated in New York, New York, before the International Court of Arbitration of the International Chamber of Commerce, seeking a declaratory judgment that it has properly terminated the CIE purchase agreement and that any obligations thereunder are excused on the grounds set forth above, among others.”
CIE, one of two parent companies of leading Mexican promoter Ocesa Entertainment, has told investors that Live Nation’s impending acquisition of Ocesa is no longer going ahead, after the US concert giant exercised “an alleged right to terminate” the agreement, one “with which CIE disagrees”.
Live Nation announced last July it intended to acquire 51% of Ocesa, which also owns Ticketmaster Mexico, from CIE and Televisa Group for a combined US$480 million, with the transaction expected to close by the end of 2019.
According to CIE, on 5 May (two days before Live Nation announced its Q1 2020 results) the parties signed a ‘standstill agreement’ that put the deal on hold; that agreement, reports Televisa, has now expired, with no agreement on terms of the acquisition reached.
CIE “will continue to analyse its alternatives and reserves all of its rights under the agreements executed in connection with [the] transaction and the applicable laws”, according to a notice filed by the company today (26 May) with the Mexican Stock Exchange (BMV).
Live Nation CEO Michael Rapino spoke about the deal during the company’s Q1 investor call, saying the company needed to pause the deal; while he is “long term, still bullish on [Ocesa’s] business and ours”, Rapino explained, Live Nation “is not looking to take on any losses from Mexico while they’re going through their six or eight months of business downturn” due to Covid-19, reports MBW.
“We want to delay the cash payment of the deal until we both know how and when we’re on the other side of this crisis,” he added. “So that’s the intent.”
Televisa – which owns 41% of Ocesa compared to CIE’s 11% – said on 7 May it agrees that Live Nation does not have the right to terminate the agreement unilaterally.
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Uncertainty for promoters as Covid-19 spreads in Latam
Promoters in Latin America are facing much uncertainty as shows are shut down, curfews imposed and currency values decline due to the worsening spread of coronavirus
The first case of Covid-19 was reported in Latin America in late February, in the Brazilian city of São Paulo. The virus has now spread to many other countries in the region, including Argentina, Bolivia, Brazil, Chile, Colombia, Mexico, Peru, Uruguay and Venezuela.
In the region’s biggest touring markets, quarantines are in place in Argentina, Colombia and parts of Brazil. In Chile, the government has imposed a curfew between the hours of 10 p.m. and 5 a.m, with over one million residents of its capital, Santiago, put under lockdown today (26 March).
This week, the Mexican government placed a ban on all public and private gatherings of over 100 people for the next month, as the country moved into phase two of the epidemic.
“It is still way too early to gauge the full impact in the mid and long term,” says Phil Rodriguez, CEO of Move Concerts, which has offices in Argentina, Brazil, Colombia, Costa Rica, Peru and Puerto Rico, as well as its Miami headquarters. “The first impact is that shows and festivals have been cancelled or rescheduled.”
“For now, we are rescheduling shows from September onwards assuming that is a safe bet, but this could change.”
Major festivals in Latin America affected by the virus include the Lollapalooza festival franchise, which has been rescheduled for 23 to 26 November in Argentina, 27 to 29 November in Chile and 4 to 6 December in Brazil. Estéreo Picnic, due to take place in the Colombian capital of Bogotá in March, has now moved to the start of December.
“For now, we are rescheduling shows from September onwards assuming that is a safe bet, but this could change”
Rodriguez notes that promoters’ associations in all markets have been meeting and reaching out to governments for assistance in various forms, such as “ low interest credit lines, moratorium on taxes and extensions on the time period for reimbursements on cancelled shows.”
Asked what can be expected over the next few months, Rodriguez simply replies: “I wish I knew”.
“This is a continually changing scenario that can change at any minute and has so many parts involved that any speculation is sheer conjecture,” says the Move Concerts boss. “I think we all need a few more weeks to get a better handle on the longer term picture.”
Guillermo Parra, director of international events at Ocesa, the largest promoter in Latin America, agrees that the upcoming weeks “will be crucial”.
Live Nation announced its plan to acquire a controlling stake in Ocesa Entertainment, the world’s fifth-largest promoter and the parent company of Ticketmaster Mexico, in July last year. The promoter puts around 3,100 shows a year and operates 14 venues across Mexico.
“At the moment, all gatherings have been banned – from movie theaters to concerts – until 19 April,” says Parra, “but I honestly think this will go on for longer.”
“When we wake from the virus nightmare, the economic reality will begin”
In Chile, a market which has seen heavy disruption over the past few months due to wide-spread anti-government protests, promoters are rescheduling shows to June, subject to venue availability and touring schedules, says Carlos Geniso, president of DG Medios.
On 18 March, Chilean president Sebastian Piñera declared a “state of catastrophe” for 90 days in the whole country, including a ban on gatherings in public spaces and the establishing of a quarantine and curfew. After Brazil, the country is currently one of the worst affected in the region, with 1,142 confirmed cases.
“We are trying to move as much we can to the last quarter calendar of 2020,” says Geniso, adding that the income loss for thousands of people working in the country’s live industry “will be great for a long period of time”.
The economic impact of the virus is of great concern for all in Latin America. Rodriguez states that Brazil and Colombia have been hit particularly hard by the virus, not just in terms of numbers – Brazil has reported 2,201 cases and Colombia has 378 – but rather because “the exchange rate with the dollar has skyrocketed”.
One dollar is equivalent to 5.05 Brazilian reales, up from BRL4.45 at the end of February, whereas 4,066 Colombian pesos now equal $1, increasing from COP3,460 a month ago.
In Mexico, Parra states that, between the virus and declining oil prices, “the Mexican peso has been crushed”. The Mexican currency fell to a record low against the dollar earlier this week, with $1 selling for over 25 pesos on Monday.
“When we wake from the virus nightmare, the economic reality will begin,” says Parra.
Photo: Leonardo Samran/Flickr (CC BY 2.0) (cropped)
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