Live Nation Entertainment reported changes in the stock market Monday morning and many assumed this was a result of a potential deal between Live Nation and SFX Entertainment. For those of you who don’t know, SFX owns Tomorrowland and its sister festivals, while Live Nation owns EDC. According to sources, Live Nation Entertainment will purchase SFX or its assets, such as day-long music festivals. Sources added that a sale is a real option for SFX, considering that the company is struggling with a large amount of debt that is a result of CEO Robert Sillerman’s strange actions and the controversies surrounding this year’s TomorrowWorld.
Experts consider Live Nation’s approach as a risky deal, as SFX has been pretty unstable to say the least. Stock market website The Street notes:
“We rate LIVE NATION ENTERTAINMENT as a Hold with a ratings score of C.(…) some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks.”
The deal will definitely excite SFX bondholders, but it’s unclear of how the deal would apply if Live Nation Ent. only gets some assets and not all stocks as it is expected. For more information visit Reuters or TheStreet.
Source: The Street