Live Nation Entertainment is a California-based events promoter and venue operator. It has built its business scale by consolidating concert promoters. In 2010, Live Nation merged with well-known online ticketing company Ticketmaster. Live Nation promoted famous names like Jay-Z, Shakira, and U2 and earns most of its revenues from sporting events. Short-term prospects for the company look bleak due to the pandemic. However, it is a leader in concert, events, and talent management. It has a strong brand and has adapted to selling tickets for virtual concerts. Therefore, its long-term prospects appear to be bright.
Live Nation Entertainment Company Background
Live Nation Entertainment began operations in 1996 as SFX entertainment. The business was a subsidiary of SFX Broadcasting. In the 1990s, the company acquired multiple concert promoters. The company was eventually bought by Clear Channel, who in 2005, spun off the entertainment business as a new company called Live Nation. Since the spin-off, Live Nation merged with Ticketmaster and has also made several acquisitions in the music industry. Live Nation also made international acquisitions in the 2006 to 2009 period including Gamerco in Spain. The Ticketmaster acquisition was not straightforward as the company faced issues with competition commissions of some countries.
Today, Live Nation serves over 500 million fans across 44 countries. It controls more than 200 venues including iconic facilities like the Hollywood Palladium, the House of Blues, and the Spark Arena in New Zealand. In 2018, Live Nation sold close to 480 million tickets.
If you are an investor who is bullish on the longer term future of live entertainment businesses, then you may want to consider Live Nation Entertainment as a potential candidate. Because of the strong headwinds created by the pandemic, stock prices have fallen and valuations may be favorable at the moment. Live Nation is the largest player in the live entertainment space and has a near-monopoly in ticketing.