Live Nation Signs Mexico, Brazil Concert Deals

0

Shares of Live Nation Inc. fell five percent on Thursday even as the nation’s largest concert promoter announced two partnerships that should significantly expand its business south of the border.

Beverly Hills-based Live Nation said that it has signed five-year deals to extend its world tours to venues operated by event organizers in Brazil and Mexico. Corporacion Interamericana de Entretenimiento SAB, which had $1 billion in sales last year, handles more than 85 percent of international artists’ shows in Mexico. In Brazil, Live Nation will be working with Time For Fun, which also has venues in Chile and Argentina.

Financial terms weren’t disclosed for either deal.

Noting that Brazil and Mexico are the fifth and 11th most populated countries in the world, respectively, Chief Executive Michael Rapino called the deal cost-effective way to gain access to a growing market. “We have the biggest company in Latin America as a partner,” said Rapino in a statement, referring to CIE, “without having to buy a company and lay out a lot of capital.”

Live Nation has been working to increase overseas opportunities for artists it promotes in the United States. International revenue rose 13 percent to $377 million in the second quarter.

Shares of Live Nation fell 85 cents, or 5 percent, to $16.15 in morning trading on the New York Stock Exchange.

No posts to display