Live Nation has terminated a $480.00 million acquisition of Mexico’s largest promoter: OCESA Entretenimiento. According to Billboard, a future agreement is still possible.
Live Nation notified CIE (Corporación Interamericana de Entretenimiento) and Grupo Televisa that it was terminating an agreement for the purchase of one of the largest entertainment companies in Mexico.
Previously Michael Rapino, CEO of Live Nation had announced an evaluation for the purchase of this promoter. They were going to check the impact of COVID-19 on the Latin American music industry and OCESA.
“I’m not looking to take on any losses from Mexico while they’re going through their six months of a business downturn. Ideally, we want to get the deal done”Michael Rapino, Live Nation’s CEO
Live Nation and Ocesa were in a separate agreement to discuss modifications for the acquisition. However, they were unable to agree to the new terms of purchase before the standstill agreement expired.
They announced the acquisition in July of last year but Mexican regulators didn’t approve the agreement until mid-April 2020. These two promoters have been partners in Mexico for years, both in Ticketmaster and in touring and festivals.
The American promoter stated that they’re not obliged to close the transaction. Because due to the crisis by Covid-19, international finances have been complicated and shows have been canceled.
“CIE will continue analyzing its alternatives and reserves all the rights that correspond to it under the agreements concluded for said transaction and in accordance with the applicable legislation”CIE in an official Statement
Televisa’s representatives indicated they disagree with the Termination Letter.
“Televisa reserves all its rights about the arguments previously expressed by Live Nation and any related action. As well as concerning the Termination Letter and agreements. “Televisa in an Official Statement
With this type of news, there is no doubt that the entertainment and live music industry has been affected by the coronavirus pandemic. With the uncertainty that this type of event will create in the future to avoid infections.