Live Nation has terminated a planned $480 million acquisition of Mexico's largest promoter OCESA Entretenimiento, but a future agreement is still possible, a source tells Billboard.
Soy Luna Live, one of OCESA’s top-grossing shows of the past year, according to Billboard Boxscore. After the deal was put on hold earlier this month, the parties were were unable to agree to new terms.
Live Nation has terminated a planned $480 million acquisition of Mexico's largest promoter OCESA Entretenimiento, but a future agreement is still possible, a source tellsMonday , Live Nation officials notified Corporación Interamericana de Entretenimiento and Grupo Televisa that Live Nation was terminating a stock purchase agreement to acquire a controlling interest in the Mexican concert company. Live Nation chief executivecall, saying company officials planned to"evaluate the impact of the global COVID-19 pandemic on OCESA’s business and operations" in Mexico and the rest of Latin America. Live Nation and OCESA's owners entered into a separate standstill agreement to discuss modifications to the acquisition, but were unable to agree to new purchase terms before the standstill agreement expired. CIE and Grupo Televisa are expected to contest the termination and the three parties will soon begin arbitration proceedings. Live Nation officials intend to seek a declaratory judgment from an international arbitration body that the company has properly terminated the purchase agreement., although Live Nation would likely want changes made to the agreement to mitigate any uncertainty caused by the pandemic. “Longterm we’re still bullish on their business and ours, we want to be in business with OCESA and get the deal done, but we’re not sure where Mexico stands” with managing the COVID-19 crisis, Rapino told analysts on the May 7 earnings call. “I'm not looking to take on any losses from Mexico while they're going through their six or eight months of a business downturn and come out the other side. Ideally we'd want to get the deal done, we want to delay the cash payment of the deal until we know we are on the other side of this crisis -- that’s the intent.”of last year, but wasn't approved by Mexican regulators until mid-April 2020. Live Nation and OCESA have been partners in Mexico for years, both in Ticketmaster and in touring and festivals. In 2018, OCESA/CIE was the highest-grossing Latin promoter on the Billboard Year-End Boxscore charts and the fourth highest grossing promoter overall. On the 2019 year-end charts, it was the third highest grossing promoter, only behind Live Nation and AEG, reporting $233.2 million in ticket sales for 936 events in front of 4.3 million fans.
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