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Live Nation Entertainment Inc LYV

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Liberty Media Announces SPAC at Investor Day, Expect Live Nation to Be Aggressive on M&A

Neil Macker, CFA Senior Equity Analyst

Analyst Note

| Neil Macker, CFA |

Liberty Media held an investor day on Nov. 19 for its portfolio companies, including Sirius XM, Live Nation, and Formula One. Given the crowded nature of the day, much of the information had been disclosed before but there were some interesting new details particularly on the merger and acquisition front. Liberty Media announced the creation of Liberty Media Acquisition Corp., a special purpose acquisition company, or SPAC, that will look to raise $500 million to purchase media and entertainment assets that don’t necessarily fit under one of the three tracking stocks for SiriusXM, Formula One, and Atlanta Braves. However, given the complicated structure of Liberty Media, we would not be surprised if the tracking stocks for Sirius XM and Formula One end up holding some of the 20% of the shares in the SPAC that Liberty plans to hold after the capital raise. We are maintaining our narrow moat ratings and fair value estimates of $5.90, $33, and $50 for Sirius XM, Formula One, and Live Nation, respectively.

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Company Profile

Business Description

Live Nation is the largest live entertainment firm in the world with over 570 million fans served in 44 countries in 2018 by the company's concert and ticketing platforms. Via either owning, operating, or holding exclusive booking rights, Live Nation controls over 235 venues including the House of Blues, the Hollywood Palladium, and Spark Arena in New Zealand. Live Nation also owns one of the largest ticketing services, Ticketmaster, which sold over 480 million tickets for over 12,000 clients in 2018. The firm's artist management agencies have over 400 clients. This large live entertainment footprint helped Live Nation become one of the largest advertising and sponsorship platforms aimed at music fans. Liberty Media owns 33% of Live Nation, held under its SiriusXM tracking stock.

9348 Civic Center Drive
Beverly Hills, CA, 90210
T +1 310 867-7000
Sector Communication Services
Industry Entertainment
Most Recent Earnings Sep 30, 2020
Fiscal Year End Dec 31, 2020
Stock Type Speculative Growth
Employees 25,900