Live Nation Acquires Remaining Stake in Front Line
Live Nation Entertainment Inc., the world’s largest concert promoter, agreed to acquire the 25 percent stake in Front Line Management Group Inc. that it didn’t already own for $116.2 million in cash and stock.
Front Line Chief Executive Officer Irving Azoff will become Live Nation’s chairman, replacing interim head John Malone, Los Angeles-based Live Nation said today in a statement.
Owning all of the company will boost Live Nation’s cash flow by at least $20 million annually as it eliminates the dividend, Live Nation CEO Michael Rapino said in the statement. Front Line, founded by Azoff, represents artists including the Eagles and Christina Aguilera.
“The management business is a great business,” Azoff said in an interview. “And it still has room to grow both internationally and in the U.S.”
Live Nation was created in January 2010 with the $899 million merger of Ticketmaster, the world’s largest ticketing company, and Live Nation, the biggest concert promoter and artist-management company.
Azoff, who was previously CEO of Ticketmaster, will receive 1.8 million shares of Live Nation’s common stock, according to the statement. In addition, Liberty Media Corp. CEO Greg Maffei will join the board.
Liberty Media, controlled by billionaire Malone, holds an 18 percent stake in Live Nation, according to data compiled by Bloomberg. Azoff said in the interview that the acquired shares represent a 25 percent stake in Front Line.
Live Nation rose 32 cents, or 3.1 percent, to $10.80 at 4 p.m. in New York Stock Exchange composite trading. The shares climbed 34 percent last year.
To contact the reporter on this story: Katie Hoffmann in New York at khoffmann4@bloomberg.net
To contact the editor responsible for this story: Peter Elstrom at pelstrom@bloomberg.net
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