Boston, MA 10/07/2014 – Live Nation Entertainment, Inc. (NYSE:LYV) is in advanced talks with C3 presents about a possible stake acquisition as it continues to pursue synergies that it believes will expand its wings in the entertainment scenery. Live Nation has reportedly been pursuing the largest independent promoter for some time and will likely seal a deal worth $250 million.
Live Nation Pushing for 51% Stake
Live Nation Entertainment, Inc. (NYSE:LYV) is pursuing C3 presents mostly because of its Lollapalooza and Austin Limits festivals that are expected to provide other revenue streams. The transaction involves Live Nation acquiring majority stake in C3 Presents of about 51%. The startup founded in 2007 has immensely grown at the back of being run by three friends all of whom are known as Charles or Charlie.
Live Nation will be buying a reputable startup that sold approximately 2,025,002 event tickets last year that amounted to gross sales of $124 million. C3 Presents core business involves controlling concert venues in the Austin area as well as booking performances at casinos. The company’s annual income is reported to be approximately $20 million. C3 Presents will allow Live Nation Entertainment, Inc. (NYSE:LYV) to expand its festival portfolio especially into rock music concerts.
Push for Acquisitions
Acquisitions continue to be the main point of focus for Live Nation having already sealed deals for dance promoters including Cream, Hard and Insomniac. Specific terms of the merger have not yet been disclosed especially on whether Live Nation Entertainment, Inc. (NYSE:LYV) will take over C3 Presents ticketing service as well as Front Gate Tickets.
C3 Presents has enjoyed close ties with Live Nation over the years, so a merger does not come as a surprise. The close ties have mostly been cemented by the fact that one of the three owners of C3 presents is a former executive of Live Nation Entertainment, Inc. (NYSE:LYV).
