California-based entertainment company Live Nation is reportedly planning to acquire a 51% stake of leading Mexican concert promoter OCESA Entretenimiento for around USD 444 million. The American company will acquire OCESA’s stake from Grupo Televisa, a Spanish multimedia company and a leading player in the live entertainment industry in Latin America, CIE.
The acquisition was initially announced in 2019 for USD 480 million but got delayed due to the COVID-19 pandemic. Changes in the exchange rate were also the primary reason behind the decrease in price.
Live Nation has planned to move ahead with the deal, which is now expected to close later this year or in early 2022, subject to regulatory approval.
For the record, OCESA Entretenimiento is known to promote more than 3,100 events for approximately 6 million fans across Colombia and Mexico each year. Its service portfolio includes sponsorship, ticketing, merchandise, food & beverage, and venue operation across 13 premier venues in Mexico.
As a part of the agreement, Live Nation will also acquire a part of OCESA Seitrack, the company’s booking and artist management joint venture, a convention and exhibition center in Mexico called the Centro Citibanamex, and ICREA, one of the country’s leading special and corporate event organizers.
Chief Executive Officer of Live Nation Michael Rapino was quoted saying that OCESA is a stellar business with deep roots in Mexico’s live entertainment domain. He added that the company will play a crucial role in putting together many shows in Mexico and Latin America.
Soberón Kuri, Chief Executive Officer and President of CIE reportedly said that this acquisition is a natural evolution of the long-standing relationship between both companies and will provide CIE with a one-of-a-kind opportunity to contribute towards the expansion of the Mexican live entertainment industry and support the local talent abroad.
If reports are to be believed, Soberón Kuri will serve as the Chief Executive Officer of the joint venture while Michael Rapino will be appointed as the Chairman of the venture’s board of directors.