Live Nation Entertainment, the world’s largest live-entertainment company, has closed its long-in-the works acquisition of a 51% controlling interest in OCESA Entretenimiento, a leading promoter inLatin America. The aggregate purchase price was MXN $8,835 million (around U.S. $415 million), 7% of which will be held back and retained by Live Nation to cover operating losses, if any, for a period of time following closing
One of the most prominent live events businesses globally, OCESA promotes thousands of events for millions of fans in a typical year acrossMexicoandColombia,and also has a robust business portfolio in ticketing, sponsorship, food & beverage, merchandise, and venue operation with 13 premier venues acrossMexico. OCESA’s primary ticketing business, Ticketmaster Mexico, is a leading ticketing company inMexico, with around 20 million tickets sold annually.
While the acquisition was delayed by the pandemic, Live Nation Entertainment President and CEO Michael Rapino has said on earnings calls that he expected the deal to go through in due course, and now it has.
“As we continue to bring shows back around the world, we’re excited to officially welcome OCESA into Live Nation,” said Rapino. “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.”
“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,” said Alejandro Soberón Kuri, Chairman of the Board and Chief Operating Officer of CIE. “We are veryexcited 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 toMexicoandLatin America.”
Live Nation acquired OCESA from CIE, a prominent player in the live entertainment industry inLatin America, and Grupo Televisa, the largest media company in the Spanish-speaking world. 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.
The announcement adds that as of mid-October, more than 22 million tickets had already been sold for Live Nation shows next year. The concerts pipeline for 2022 is up double digits from 2019, with touring plans extending into 2023 and 2024.
