Continuing to build its global network, Live Nation Entertainment (LNE) has acquired a 51 per cent stake in the country’s leading promoter OCESA Entretenimiento from Latin America leisure conglomerate Corporacion Interamericana de Entretenimiento (CIE) and multimedia company Grupo Televisa.
OCESA, with which LNE has had long working relationship also majority owns Ticketmaster Mexico, which sells 37 million tickets a year, and has a promoting office in Colombia.
Pending regulatory approvals, the deal is expected to be finalised by the end of the year.
CIE president and CEO Alejandro Soberón Kuri will remain as a board director CEO, with LNE president and CEO Michael Rapino taking the role of chairman.
Financial terms were not disclosed, but according to Grupo Televisa, it sold its 40 per cent interest in OCESA for about 5.206 billion pesos ($270m), along with a dividend of approximately 350 million pesos ($18.3m), on or before the deal’s closing.
The deal marks Grupo Televisio’s exit from the live entertainment business.
Promoting more than 3,000 events annually and selling close to six million tickets across Mexico and Colombia, OCESA also has a 14-venue portfolio that includes Mexico City’s Foro Sol (cap. 50,000) and Palacio de los Deportes (26,000), Arena VFG (15,000) in Guadalajara and Monterey’s Auditorio Citibanamex (8,200).
“OCESA has been Live Nation’s touring, festival and ticketing partner in Mexico for years, and I admire the business Alex has built,” says Rapino. “This next step is a logical extension for both our teams and we look forward to working on many more shows together.”
CIE’s Soberón Kuri says. “This evolution of our long-standing relationship with Live Nation gives us a unique opportunity to continue OCESA’s 30-year contribution to the development of the Mexican live entertainment industry.”