Live Music entertainment - IMAP M&A sector rePort Roadmap to live music entertainment acquisitions with a special focus on festivals
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IMAP September 2017
Live Music
Entertainment
Roadmap to live music entertainment
acquisitions with a special focus on festivals
IMAP M&A sector report
Live Music Entertainment Executive summary
Live music entertainment related opportunities
in numbers
Favorable market environment and improving M&A
83% 3.0% 40
SHARE OF TOURING PROJECTED CAGR AVE. ANNUAL GLOBAL
REVENUES OF TOP 20 2016-2020 TRANSACTIONS
MONEY MAKERS
INCREASING STRONG GROWTH M&A ACTIVITY UP
IMPORTANCE
Total live music revenue The two main drivers:
Artists are now more will rise at a 3.0% CAGR geographic expansion
dependent on earnings through 2020, and tapping into
from live music exceeding USD related revenue
performance than ever 28 billion, globally. streams.
before.
2 IMAP
Executive summary TELEMATICS
Table of contents
04 Market outlook and summary
05 Drivers of live music entertainment
market
06 Revenue streams of top artists
07 Festival industry trends
08 How to grow: acquisitions vs. organic
growth
09 Number of acquisitions by live
entertainment and event organization
players
10 Universe of music event organization
related activities
11 Transaction density by area of operation
12 Peer transaction multiples
Case studies:
13 Live Nation EntertainmenT
17 CTS Eventim
19 DEAG
21 Ultra Music Festival
22 Red Bull
23 Appendix
24 About IMAP
IMAP IMAP 3
Live Music Entertainment Outlook & summary
Market outlook and summary
Favorable market environment and improving M&A activity
Total live music For active live In terms of number Public transaction The most active
revenue is entertainment of transactions, the multiples are investor in
expected to players, diverse outstanding results scarce, the known acquisitions has
rise at a 3.0% activity related of 2014 might ones range on a been Live Nation,
CAGR through acquisitions return in 2017 and healthy interval: expanding further
2020, exceeding could be a viable 2018. 6x-15x EV/EBITDA into ticketing and
USD 28 billion, option for growth, promotion.
globally. Despite especially in case
the overwhelming of investing in
expansion of the ticketing, venues
digital world, live and promoters
entertainment with good track
events give fans a records and
type of experience networks.
that is unparalleled
and engaging.
4 IMAP
Market drivers Live Music Entertainment
Drivers of live music entertainment market
Younger revellers worldwide are seeking live performance experiences
The world is getting younger: in 2014 1.8 billion of
the world’s population was between 10 and 24 years
Festivals
old - a record high - and global literacy has improved
significantly. Combined with strong economic growth
this drives a need for culture and entertainment
offerings, especially in Asia and Africa.
The appetite for physical events and venues has
definition:
increased. The music industry has shifted to live “Special segment of the live
events, and revenues from live shows now surpass music entertainment business:
recorded music sales in some regions. In Europe, an organized series of concerts
ticket revenues for live music performances are now typically held annually in the
more than twice of recorded music sales. same place.”
Festivals are an increasing asset for cultural tourism
worldwide, and developing cultural infrastructure is
especially important for emerging countries, which
will attract more than half of international tourists by
2030.
Source: IMAP, EY – Cultural Report, PWC: Global entertainment
and media outlook 2016-2020
IMAP 5Live Music Entertainment Revenue streams of top artists
Revenue streams of top artists
Live entertainment is the main driver of revenues
Taylor Swift
Kenny Chesney
The Rolling Stones
Billy Joel
One Direction
Grateful Dead
Luke Bryan
U2
Adele
Maroon 5
Jason Aldean
Shania Twain
Dave Matthews Band
Madonna
Elton John
Rush
Ed Sheeran
JuanGabriel
Florida Georgia Line
Fleetwood Mac
Sales Streaming Publishing royalties Touring
U.S. revenues only, Revenue from merchandising, synchronization and sponsorship is not included. Source: Billboard.com
Touring revenues for top artists The total revenue of Top20 artists At the same time for mid-tier acts,
are the main source of income. for 2015 according to Billboard’s that are far from this ranking,
estimates was USD 448 million. live performances drive sales for
On average the split was: recorded music and generate
- Touring 83% airplay. At their levels touring is
- Sales 11% not as lucrative as for the top
- Publishing royalties 4% bands, but still an obligatory
- Streaming 2% exercise.
6 IMAPFestival industry trends Live Music Entertainment
Festival industry trends
Trends driving the future of festivals can be grouped into four sections
ARTISTS SOCIAL MEDIA TECHNOLOGY NEW DIMENSIONS
Artists are turning their Fans expect a mix of Immersive theater, Virtual Strong competition and
gaze to touring to take options and more Reality and Augmented festival export (e.g.
advantage of the massive personalized experiences Reality will influence live Lollapalooza going to
jump in artist fees music performances Berlin)
Social media provides
Lack of strong headliners hard cash benefits Blockchain solutions Reconsider catering
(announcement dates to event organizers, may transform ticketing options: in-house or
are earlier: 8-9 months especially in ticket sales solutions and licensing outsource, “food-line-ups”
instead of 3-4) – channeling royalty collection for or new lines: veggie, bio,
influenced by cheap public performances organic, local
airline tickets Video content and live
broadcasting on mobile Hybrid music events bring Increasing staff numbers
Activism (political) is is becoming increasingly in bigger audiences and to secure better
expected to revive the live important more money (eg. film, experience derived from
music community media and video games) professionalism and
security needs
Artists are recognizing Online ticketing unlocks
the role sponsors play in powerful data and Need to take a look
helping to fund festivals, insights like never before at how to tackle the
and are more willing to challenges posed
participate in auxiliary Mobile ttechnology by extreme weather
activities (Lady Gaga’s improves the overall conditions
Dive Bar Tour, sponsored attendee experience
by Bud Light). Brands (tickets, cashless Increase revenues from
will become even more payment and up-to- potential upgrades (VIP
intertwined with artists minute event guides) and VVIP)
RFID technology and Niche, high-end boutique
smart cards add value gatherings: targeting
once inside the event the wealthier and family
demographics
Live streaming events
keep fans connected and
engaged digitally
IMAP 7Live Music Entertainment How to grow
How to grow: acquisitions vs. organic growth
Expanding in the live music entertainment business has two different paths
ORGANIC GROWTH / IN-HOUSE
ACQUISITIONS
DEVELOPMENT
D
ecide on strategic directions incl. ecide on strategic directions incl.
D
PROCESS geographies geographies
R
esearch potential targets Develop new content, businesses, find
S
tart negotiations new markets
Pay, manage and/or integrate Invest in implementation and go to
market
F
ewer management issues as usually lexibility
F
PROS owner remains in management role Higher chance to reach better returns /
B
etter estimate / limit on spending margins
W
ell established business model Less dependent on available, good quality,
P
rofit in place – more predictable independent businesses on sale
business
S
trong competition from established ime heavy exercise for management
T
CONS players Higher risk as concept is not proven
D
ifficult pricing if it has to be based on
poor financials
The focus of this sector report
8 IMAPNumber of acquisitions Live Music Entertainment
Number of acquisitions by live entertainment
and event organization players
In 2017 we see an uptick in the number of deals by industry players*
90
80
70
60
50
40
30
20
10
0
2012 2013 2014 2015 2016 2017
* Covering global transactions where percentage of acquired stake is 51% or above
Source: Zephyr / IMAP
For this research, as opposed to taking the usual
approach of comparing deals (e.g. targets) in the sector,
we took a different approach and examined the activity
of players already present in the entertainment/event
business.
In 2014, the number of transactions executed by arts
facility operators and convention organizers (excluding
business/conference purpose and sports deals) peaked at
83 yearly, based on the data provided by Bureau Van Dijk.
The most active players were Live Entertainment Group
and Live Style Inc. (formerly SFX Entertainment Inc.).
IMAP 9Live Music Entertainment Benchmarking
Universe of music event organization
related activities
Live entertainment involves a wide range of businesses
Venue operator
Tour / concert / event Ticketing (branded /
/ festival organizer white label
or promoter solution)
Other
On-site payment
formats
solutions
Festivals /
Concerts /
Other events
Artist
management/ Mobile apps and
agency online solutions
Equipment PR & Marketing
(incl. Digital)
Merchandising
& licensing
See appendix for detailed description of the categories.
he analysis of live music entertainment related
T
activities resulted in 10 areas or activities via which
an industry player or outsider can enter.
These activities range from acquisition of a
ticketing solution to the equipment needed for
staging a production.
The decision should be made wisely, eg. revenue
stream distribution could show surprising results,
according to a German survey* 25% (!) of all
revenues come through ticketing.
* Berthold Seliger “Das Geschäft mit der Musik“ via DZ Bank
10 IMAPBenchmarking Live Music Entertainment
Transaction density by area of operation
There are clear directions that the main players follow
Venue operator
Tour / concert / Ticketing (branded /
event / festival white label
organizer or solution)
promoter
Other
formats On-site payment
solutions
Festivals /
Concerts /
Other events
Artist
management/ Mobile apps and
agency online solutions
Equipment PR & Marketing
(incl. Digital)
Merchandising
& licensing
Low High
Number of examples
After studying the value chain of the event market We have not seen examples for enterprise level-
and the M&A activities of large international players, investments in:
we have identified potential categories for expansion: Equipment, with strong physical characteristics
Geographical expansion and extending event (sound, light, stage, security and facility)
offering via acquisition of: tour promoters, concert, Artist management or agency
event and festival organizers
Taking advantage of other revenue streams in As they are competing for live entertainment events,
the value chain: ticketing, merchandising, PR and it might be worth considering entering the market of:
marketing Non-music event segment (theatre, circuses,
New, supplementary businesses: on-site payment, shows, comedy, discotheque)
mobile apps and online solutions Sport events
Other directions that might be relevant in the long run:
Venue operation
IMAP 11Live Music Entertainment Peer transaction multiples
Peer transaction multiples
EV/EBITDA
Date Target name Country Target business description Acquiror Deal type EV (eur m)
(x)
Tour / concert / event / festival organizer or promoter
2014 Zibrant Ltd GB Event management services Zebra 1234 Ltd Acquisition 2.5 6.0
100%
2014 Kilimanjaro Live GB Entertainment events promotion DEAG Concerts Acquisition 6.7 13.7
Ltd services, Live music events GmbH 51%
promotion services
2012 Hammersmith GB Live music and performance venue Stage C Ltd Acquisition 23.2 6.0
Apollo Ltd 100%
Ticketing
2016 Best Union IT Event organisation and Bidco Acquisition 40.2 9.7
Company Spa management services, Online 75%
electronic ticketing services
2014 Irec Eurl FR Ticketing software developer Best Union Acquisition 5.6 5.6
Company Spa 100%
2013 Encore Tickets GB Theatre ticket agency operator MBO Team – UK 100% 79.1 14.2
Ltd
2012 Infoconcert Sa FR Online ticket retailer Digitick Sa Acquisition 1.5 8.5
100%
2011 West End GB Theatre ticket booking services Encore Tickets Acquisition 11.0 8.6
Theatre Ltd 100%
Bookings Ltd
Other formats
2015 Stage NL Theatrical and live entertainment CVC Capital 60% 737.8 13.1
Entertainment production services holding Partners Ltd
BV company Ambassador
Theatre Group Ltd
Diversified
2017 See Corporation BM Artist management services, Event Giant Lead Acquisition 27.4 12.0
Ltd organisation services, Film and TV Profits Ltd increased
programme production services from 34% to
investment 100% acting
in concert
2015 Cube KR Artist management services, Woori Special Acquisition 32.1 15.3
Entertainment Concert production services, Purpose 100%
Inc. Music publisher, Visual contents Acquisition 2 Co.,
production services Ltd
12 IMAPLive Nation’s current coverage Live Music Entertainment
Live Nation’s current coverage
53 transactions made since 2006
Venue operator
Tour / concert / Ticketing (branded /
event / festival white label
organizer or solution)
promoter
Other
On-site payment
formats
solutions
Artist
management/ Mobile apps and
agency online solutions
Equipment PR & Marketing
(incl. Digital)
Merchandising
& licensing
Number of transactions
since 2006 Coverage
As a leading player, Live Nation
Entertainment has a remarkable
transaction history (53 transactions since
2006, excluding subsidiary transactions),
mostly made in the sectors of:
Tour promoters
Tour / concert event / festival organizer
Ticketing
Mobile apps and online solutions
PR & marketing (incl. digital)
Merchandising & licensing
Including subsidiary transactions
Source: Zephyr
IMAP 13Live Music Entertainment Live Nation transaction history
Live Nation transaction history 1/3
Date Target name Country Target business description Acquiror Deal type
Tour / concert / event / festival organizer or promoter
2017 ISLE of WIGHT GB Live music event operator LN-GAIETY HOLDINGS Acquisition unknown
FESTIVAL LTD majority stake %
2017 BLUESTONE IL Live entertainment management LIVE NATION Acquisition unknown
ENTERTAINMENT services ENTERTAINMENT INC. majority stake %
2017 CUFFE AND GB Artist promotion services, Events LIVE NATION Acquisition 100%
TAYLOR LTD organisation services ENTERTAINMENT INC.
2017 BOTTLEROCK NAPA US Live rock music festival operator LIVE NATION Acquisition unknown
VALLEY ENTERTAINMENT INC. majority stake %
2016 SECRET SOUNDS AU Festivals, music agencies and LIVE NATION Acquisition 51%
GROUP PTY LTD artists management agency AUSTRALASIA PTY LTD
services, Music rights owner,
Musical festivals organisation
services
2016 NOUS SAS FR Music events production services LIVE NATION Acquisition 100%
ENTERTAINMENT INC.
2016 BIG CONCERTS ZA Live entertainment promotion LIVE NATION Acquisition 51%
INTERNATIONAL services ENTERTAINMENT INC.
(PTY) LTD
2016 SWEDEN ROCK SE Live rock festival and music LIVE NATION Acquisition unknown
FESTIVAL AB entertainment operator ENTERTAINMENT INC. majority stake %
2016 AC ENTERT- US Concert promoting services LIVE NATION Acquisition unknown
AINMENT INC. ENTERTAINMENT INC. majority stake %
2014 LIVE NATION TH International concerts and shows BEC-TERO Joint venture 100%
BEC-TERO promoter ENTERTAINMENT PCL
ENTERTAINMENT LIVE NATION (HK) LTD
CO., LTD
2013 VOODOO MUSIC & US Music, arts and entertainment LIVE NATION Acquisition 100%
ARTS EXPERIENCE promoter ENTERTAINMENT INC.
2012 HARD EVENTS Music festival operator LIVE NATION Acquisition 100%
ENTERTAINMENT INC.
2013 BDG MUSIC GROUP EE Live concerts promoter LIVE NATION Acquisition 51%
OÜ ENTERTAINMENT INC.
2012 MICHAEL COPPEL AU Artists concert promoter LIVE NATION Acquisition 100%
PRESENTS ENTERTAINMENT INC.
2011 FRONT LINE US Entertainment management LIVE NATION Acquisition unknown
MANAGEMENT services ENTERTAINMENT INC. remaining stake %
GROUP INC.
2009 BIG CHILL GB Music festival operator LIVE NATION INC. Joint Venture 100%
REPUBLIC LTD GAIETY INVESTMENTS
LTD
2008 LUGER INC AB SE Live entertainment promoter LIVE NATION INC. Acquisition increased
from 49% to 100%
2008 MOONDOG SE Live entertainment promoter LIVE NATION INC. Acquisition increased
ENTERTAINMENT from 25% to 100%
AB
2008 DF CONCERTS LTD GB Live music promotion services LIVE NATION INC. Acquisition 67%
2008 MIRAGE AE Events promoter LIVE NATION INC. Acquisition 65%
PROMOTIONS
DUBAI
2006 GAMERCO SA ES Events organisation services LIVE NATION INC. Acquisition 100%
14 IMAPLive Nation transaction history Live Music Entertainment
Live Nation transaction history 2/3
Date Target name Country Target business description Acquiror Deal type
2006 HOB US Concert promotion services, LIVE NATION INC. Acquisition 100%
ENTERTAINMENT Live music venues operator,
INC. Restaurants operator
2006 CONCERT NL Concert production services LIVE NATION INC. Acquisition 50%
PRODUCTIONS
INTERNATIONAL
INC.
2009 GREAT BIG SHOWS US Concerts and theatrical events AC ENTERTAINMENT Acquisition 100%
LLC promoter, Corporate event INC.
organiser, Logistics services,
Theatrical events producer
Ticketing
2017 TICKETPRO AS CZ Online ticket reservation platform LIVE NATION Acquisition 100%
operator, Ticket reservation ENTERTAINMENT INC.
offices operator
2016 TICKETHOUR SA GR Ticketing software developer LIVE NATION Acquisition 100%
ENTERTAINMENT INC.
2015 FRONT GATE US Festival ticketing services TICKETMASTER Acquisition 100%
TICKETING ENTERTAINMENT INC.
SOLUTIONS LLC
2015 UNIIVERSE CA Event ticketing platform operator TICKETMASTER Acquisition 100%
COLLABORATIVE ENTERTAINMENT INC.
LIFESTYLE INC.
2014 SEATWAVE LTD’S GB Online ticket sales platform TICKETMASTER UK LTD Acquisition 100%
ASSETS operator
2014 EVENTJOY INC. US Mobile event ticketing and TICKETMASTER Acquisition 100%
organisation application developer, ENTERTAINMENT INC.
Online event ticketing and
organisation platform operator
2014 SHERPA.BE BE Online live event ticketing platform TICKETMASTER UK LTD Acquisition 100%
operator
2012 FRONT GATE US Festival ticketing services ANSCHUTZ Acquisition 100%
TICKETING ENTERTAINMENT
SOLUTIONS LLC GROUP INC. C3
PRESENTS LLC
2011 SERVITICKET SA ES Ticket retailer TICKETMASTER Acquisition 100%
ENTERTAINMENT INC.
2010 TICKETNET SAS FR Online event ticketing services LIVE NATION Acquisition 100%
ENTERTAINMENT INC.
2009 TICKETMASTER US Online ticket reservation platform, LIVE NATION INC. Acquisition 100%
ENTERTAINMENT Online ticket reservation services
INC.
2008 SLO LIMITED INC.’S US VIP ticketing services TICKETMASTER GROUP Acquisition 100%
ASSETS INC.
2008 GET ME IN! LTD GB Online ticket vendors TICKETMASTER UK LTD Acquisition 100%
2008 TNOW US Online ticket vending services TICKETMASTER GROUP Acquisition 100%
ENTERTAINMENT INC.
GROUP INC.
2007 PACIOLAN INC. US Venue management and online TICKETMASTER GROUP Acquisition 100%
ticket sale software developer INC.
IMAP 15Live Music Entertainment Live Nation transaction history
Live Nation transaction history 3/3
Date Target name Country Target business description Acquiror Deal type
2007 EMMA CN Ticketing and event promotion TICKETMASTER GROUP Acquisition unknown
ENTERTAINMENT service provider INC. majority
HOLDINGS HK LTD
2006 BILETIX TR Online ticket sales and TICKETMASTER GROUP Acquisition 100%
distribution services INC.
2006 TICK TACK TICKET ES Events tickets management and TICKETMASTER GROUP Acquisition 100%
SA distribution services INC.
Mobile apps and online solutions
2016 INDMUSIC INC. US Online independent music video LIVE NATION Acquisition 100%
platform operator ENTERTAINMENT INC.
2015 TWO TOASTERS US Online iOS and Android mobile TICKETMASTER Acquisition 100%
application developer ENTERTAINMENT INC.
2014 YOURTROVE US Online personalized search results LIVE NATION Acquisition 100%
driven by social connections ENTERTAINMENT INC.
platform operator
2013 MEEXO INC. US Mobile and social applications LIVE NATION Acquisition 100%
developer ENTERTAINMENT INC.
2012 REXLY INC. US Social music mobile application LIVE NATION Acquisition 100%
developer ENTERTAINMENT INC.
2012 NETDO LI Online concert set list sharing LIVE NATION Acquisition 100%
ESTABLISHMENT community web portal ENTERTAINMENT INC.
2006 ILIKE.COM US Online community services TICKETMASTER GROUP Minority stake 25%
INC.
PR & Marketing (incl. Digital)Artist management / agency
2011 BIGCHAMPAGNE US Market consultancy services, LIVE NATION Acquisition 100%
LLC Market research services, Online ENTERTAINMENT INC.
communities consumer data
software developer
2007 ECHOMUSIC LLC US Creative positioning and branding TICKETMASTER GROUP Acquisition unknown
services, Entertainment marketing INC. stake %
services, Music and merchandise
digital distribution services,
Online advertising services, Online
fan club
Artist management / agency
2008 FRONT LINE US Artist management services TICKETMASTER GROUP Acquisition 30%
MANAGEMENT LLC INC.
2007 SIGNATURES US Music and celebrity licensing and LIVE NATION INC. Acquisition 100%
NETWORK INC. event merchandising company
Source: Zephyr
16 IMAPCTS Eventim’s current coverage Live Music Entertainment
CTS Eventim’s current coverage
22 transactions made since 2006
Venue operator
Tour / concert / Ticketing (branded /
event / festival white label
organizer or solution)
promoter
Other
On-site payment
formats
solutions
Artist
management/ Mobile apps and
agency online solutions
Equipment PR & Marketing
(incl. Digital)
Merchandising
& licensing
Number of transactions
since 2006 Coverage
CTS’s mission is to become Europe’s largest
eCommerce ticketing provider. They are realizing
growth potential by:
Increasing market share - new products, such as
sport events, theater, fairs, cinema, etc.
Changing the value chain - new channels, such as
kiosk systems, internet ticket shop, merchandising,
internet advertising
Geographical market extension -
internationalization in Europe
New businesses, such as access control systems,
database marketing, event-related travel, online
auctions, paperless tickets
Including subsidiary transactions
Source: Zephyr
IMAP 17Live Music Entertainment CTS Eventim transaction history
CTS Eventim transaction history
Date Target name Country Target business description Acquiror Deal type
Tour / concert / event / festival organizer or promoter
2016 Medusa Music Group DE Electronic music and DJ concept Medusa Music Group Joint venture 100%
Gmbh and Alda Holding promoting services Gmbh Alda Holding BV
BV’s Hamburg, germany
based joint venture
2014 Fullsteam Records OY’s FI Live performance and music FKP Scorpio Sweden AB Acquisition 100%
fullsteam agency division promoting agency
2014 Holiday On Ice NL Ice entertainment production Medusa Music Group Acquisition 50%
Productions BV services Gmbh
2013 ABC Production AG CH Event management services CTS Eventim AG Acquisition 80%
2008 Palazzo Produktionen DE Live concert promoter FKP Scorpio Acquisition increased
Gmbh Konzertproduktionen Gmbh from 51% to 100%
2006 ACT Entertainment AG CH Concerts and music tours organizer Medusa Music Group Acquisition 51%
Gmbh
Venue operator
2012 Arena Management Gmbh DE Events organization services provider CTS Eventim AG Acquisition 100%
Ticketing
2016 Starticket AG and CH Ticket Marketing Services, Ticketing Ticketcorner Holding AG Joint venture 100%
Ticketcorner Holding AG agent Starticket AG
joint swiss ticketing group
2015 Kinoheld Gmbh DE Online cinema ticket retailer CTS Eventim AG & CO. Acquisition 51%
KGAA
2014 Gtech Spa’s ticketing IT Ticket reservation services TICKETONE SPA Acquisition 100%
business unit
2014 See Tickets Nederland BV NL Musical, theatre and other CTS Eventim AG Acquisition
performance ticketing services
2014 Entradas See Tickets SA ES Musical, theatre and other CTS Eventim AG Acquisition
performance ticketing services
2014 Top Tickets France SAS FR Musical, theatre and other CTS Eventim AG Acquisition
performance ticketing services
2014 Stage Entertainment BV’s RU Musical, theatre and other CTS Eventim AG Acquisition
ticketing activities in performance ticketing services
Russia
2013 Crea Informatica SRL IT Online and mobile electronic ticketing Ticketone Spa Acquisition 60%
marketplace platform operator,
Online and mobile electronic ticketing
marketplace software developer
2010 Ticketone Spa IT Online ticketing reservation services, Eventim Online Holding Acquisition increased
Online ticketing reservation services Gmbh from 49.824% to
platform operator 99.65%
2010 See Tickets Germany DE Live entertainment ticketing services CTS Eventim AG Acquisition 100%
Gmbh provider
2010 Ticketcorner AG CH Ticketing agent CTS Eventim AG Acquisition 100%
2009 Eventim CH AG CH Ticket marketing services CTS Eventim AG Ringier Holding AG
2008 Lippupiste OY FI Ticketing services CTS Eventim AG Acquisition 65%
2008 Cardplus OY FI Plastic card manufacturer, which CTS Eventim AG Acquisition 100%
owns a 30 per cent stake in the
Tampere-based ticketing services
company Lippupiste Oy
2006 Tictec AG CH Ticketing services CTS Eventim AG Acquisition 100%DEAG’s current coverage Live Music Entertainment
DEAG’s current coverage
9 transactions made since 2006
Venue operator
Tour / concert / Ticketing (branded /
event / festival white label
organizer or solution)
promoter
Other
On-site payment
formats
solutions
Artist
management/ Mobile apps and
agency online solutions
Equipment PR & Marketing
(incl. Digital)
Merchandising
& licensing
Number of transactions
since 2006 Coverage
EAG covers the entire value chain in the field of
D
Live Entertainment: from concerts via record sales,
rights exploitation, sponsorship and merchandizing
to ticketing.
ocial media and digital customer communication
S
become increasingly important and are continuously
extended by DEAG through its digital strategy.
Including subsidiary transactions
Source: Zephyr
IMAP 19Live Music Entertainment DEAG transaction history
DEAG transaction history
Date Target name Country Target business description Acquiror Deal type
Entertainment events promotion
Acquisition
2014 Kilimanjaro Live Ltd GB services, Live music events DEAG
51%
Concerts Gmbh promotion services
Acquisition
Concert and event organization DEAG Deutsche increased
2013 Aio Group AG CH
holding company Entertainment AG from 52% to
100%
DEAG Deutsche
Blue Moon Joint venture
2013 AT Tour promotion services Entertainment AG
Entertainment 100%
Ms Karin Edtmeier
Wizard Promotions
DEAG Deutsche Acquisition
2013 Konzertagentur DE Concert event management services
Entertainment AG 75.1%
Gmbh
Handwerker DEAG Deutsche Acquisition
2013 DE Convert event organization services
Promotion E. Gmbh Entertainment AG 51%
DEAG Deutsche
Gold Entertainment Joint venture
2010 DE Live concert promotion services Entertainment AG
Gmbh 100%
SONY Deutschland Gmbh
Manfred Hertlein
Tour and concert organization GOLD Entertainment Acquisition
2010 Veranstaltungs DE
services Gmbh 66.6%
Gmbh
The Classical Ringier Holding AG Joint venture
2009 CH Classical music producer
Company AG DEAG Classics AG 100%
DEAG Deutsche
Switzerland Classics Joint venture
2008 CH Classical concert organizer Entertainment AG Ms
AG 100%
Dina Thoma-tennenbaum
Source: Zephyr
20 IMAPAn alternative Live Music Entertainment
An alternative:
UMF became international without acquisition
Global edition of the UMF electronic music event, 20 countries in 5 continents
Venue operator
Tour / concert / Ticketing (branded /
event / festival white label
organizer or solution)
promoter
Other
On-site payment
formats
solutions
Artist
management/ Mobile apps and
agency online solutions
Equipment PR & Marketing
(incl. Digital)
Merchandising
& licensing
Original event: Ultra Music Festival held every
March since 1999 in Miami. In 2016: 165,000
guests, 3-day event for electronic music. Spin offs
include:
Ultra festivals (1+ days) – started in 2007/2008:
Argentina, Brazil, Chile, Spain (Ibiza), Japan,
Korea, South Africa, Miami - Ultra Beach - Croatia
and Bali
Road to Ultra (1-day event) – started in 2012:
Bolivia, Chile, Colombia, Japan, Korea, Macau,
Paraguay, Peru, The Philippines, Puerto Rico,
Singapore, Taiwan
ULTRA LIVE: Live stream experience - bringing
the festival online to over 20 million unique
viewers
UMF FILMS: festival after movies; feature length
documentary, UMF TV on YouTube
UMF Radio: via mobile application and in 62
countries on networks, 2-hour weekly shows
Ultramerchandise.com
IMAP 21Live Music Entertainment An alternative
An alternative:
Red Bull sponsored events as competitors
Red Bull sponsors, organizes and acquires events
Sports Adventure Motor Culture Music
Red Bull Media
Red Bull has became a significant event sponsor
and owner aiming to further strengthen its brand
recognition. Red Bull is focusing on:
Sport events (diving, bike, surf, skateboarding
and other various extreme sports)
Adventures (e.g. Red Bull Stratos);
Motor sport events (F1, Red Bull Air Race, rally, etc.);
Culture events and organizations (e.g. social
platforms);
Music.
The Red Bull Media House is a media company
specialized in sport, lifestyle programming, music
and games, strengthening all Red Bull events.
In 2007, the company launched its own record
label Red Bull Records. The Red Bull Music
Academy organizes music workshops and
festivals around the world.
Red Bull sponsors, organizes and acquires events.
22 IMAPAppendix Live Music Entertainment
Appendix
Universe of music event organizing related activities
Tour / concert / event /
festival organizers and Venue operator
promoters Could act as organizer,
Organization of the events however most often just
Financial concept of the tour lease the venue Ticketing
Production/ staging, venue selection (branded / white label solution)
and hiring Access to a software based ticketing
Marketing concept, appointment of platform and the physical network
ticket sales, etc.
Other formats
Non-music events: On-site payment
theatre, circus, comedy solutions
Sport events Necessary for cash
Other: escape game substitution
& likes
Festivals /
Concerts /
Other events
Mobile apps and
Artist management / online solutions
agency Reach / hook target
Supports the creative audience
process Proprietary content
Responsible for selecting distribution
tour promoter
Equipment PR & Marketing (incl.
L
inked to the actual Digital)
performance: sound, Tap all possible revenue sources
stage, light
Merchandising & licensing
O
ther supporting
Tap all possible revenue sources
facilities, security, etc.
Good supplement to ticketing
IMAP 23Live Music Entertainment About IMAP
About IMAP
35
COUNTRIES
350 ADVISORS
Argentina I Belgium I Bosnia and Herzegovina I Brazil I
Canada I Chile I China I Colombia I Croatia I Czechia I Egypt
I Finland I France I Germany I Hungary I India I Ireland I Italy
I Ivory Coast I Japan I Mexico I Morocco I Netherlands I
Norway I Peru I Poland I Russia I Senegal I Serbia I Slovenia
I Spain I Sweden I Turkey I United Kingdom I United States
IMAP is a global merger and acquisition advisory organization
with a presence in 35 countries.
IMAP closed over 2,100 transactions valued at $90bn in the last
10 years and is consistently ranked among the world´s top M&A
advisors (Thomson Reuters) for mid-market transactions.
www.imap.com
24 IMAPAbout IMAP Live Music Entertainment
IMAP 25IMAP september 2017
live music entertainment report authors:
IMAP Gábor Szendröi Oyvind Solvang
Phone: +34 936 026 710 IMAP Hungary IMAP Norway
E-mail: info@imap.com gabor.szendroi@imap.com oyvind.solvang@imap.com
www.imap.com
Gabriella Hajdu-Tar Rade Rakočević
IMAP Hungary IMAP expert advisor
gabriella.hajdu.tar@imap.comYou can also read
