From Brian Thompson and Alfred Branch, Jr., Ticket News:
From Oct. 9 to Dec. 7, Live Nation’s stock has fallen about 43 percent, as the company grapples with defining its role as it prepares for life without Ticketmaster.
With $3.7 billion in operation revenue but only a 4% margin, Live Nation is looking to expand beyond the concert business. Most of the company’s current profit is earned mainly through concessions sales, parking fees, and a percentage of the fees charged by Ticketmaster for the sale of tickets to their events. And as such, Live Nation is Ticketmaster’s largest client.
As part of its plan to hasten its move beyond concerts, Live Nation created the Artist Nation division and signed a $120 million deal with Madonna that encompasses albums, tours, merchandising and licensing. The deal was signed in mid-October and the stock price has been sliding ever since. Perhaps cognizant of how an extravagant event would be perceived, a couple of the company’s venues scaled back their Christmas party plans this year making them BYOB affairs, according to industry message boards.
From Brian Thompson and Alfred Branch, Jr., Ticket News:
No comments:
Post a Comment