Live Nation Entertainment Inc. on Monday said that it acquired the remaining equity stake in artist-management firm Front Line Management Group Inc. for more than $116 million in cash and stock. In addition, Liberty Media Corp. has acquired a stake in the Live Nation.
The Beverly Hills concert promoter and ticketing service acquired the equity interests in Front Line that were held by Front Line founder Irving Azoff and Madison Square Garden Inc. The company paid $56.5 million in cash and another $59.7 million worth of newly issued Live Nation shares. Azoff received 1.8 million of those shares.
Front Line has more than 250 clients, including Christina Aguilera, Kenny Chesney and the Eagles. Live Nation acquired its initial stake last year when it merged with Ticketmaster Inc., which had held its own stake since 2008.
Live Nation Chief Executive Michael Rapino said that by acquiring full ownership of Front Line it will achieve savings that should increase free cash flow by more than $20 million a year.
Separately, Life Nation said it entered into an agreement with John Malone’s Liberty Media Corp., whereby Liberty acquired 1.8 million Live Nation shares for $18.8 million in cash. Liberty agreed to purchase an additional 5.5 million shares for $57.7 million, subject to approval by Live Nation’s stockholders at this year’s annual meeting.
“Liberty’s investment in Live Nation will enable us to further strengthen our balance sheet and provide us with additional financial flexibility as we execute our growth strategy,” Rapino said in a statement.
The two announcements also resulted in changes to Live Nation’s board of directors. Azoff, who already was a director, has been appointed chairman, replacing Liberty Media Chairman John Malone, who briefly stepped into that role after Barry Diller resigned in October. Malone has stepped down from the board and will be replaced by Liberty Media Chief Executive Greg Maffei, who also becomes chairman of Live Nation’s newly created executive committee.
Live Nation shares closed up 32 cents, or 3 percent, to $10.80 on the New York Stock Exchange.
