
In a move that has surprised everyone from the music industry to the banking industry, Live Nation Entertainment made an offer to the Warner Bros Music Group for their recorded music operations.
At a time when labels are changing ownership, this is less of a surprise to some - EMI/Capitol records is now owned by Citigroup after the company defaulted on its loan of $4.2 billion.
Unlike the Citigroup deal, two things make this deal different:
1. Live Nation already controls the promotion of music industry artists concerts - they bought Ticketmaster and now control the venues as well as the ticket sales.
2. Music manager Irving Azoff of Live Nation has experience running major record labels - MCA and Giant records are two successful labels he has run. During his time with MCA during the 90's the label enjoyed enormous success with Urban, Pop and Country artists.
This means they would not only own it, but they would know what to do with it and in the process, dominate the recorded music and live performance sides of the music industry.
After the Live Nation/Ticketmaster deal, is there enough cash in their reserves to do the Warner deal? Is there too much debt at Live Nation? Will federal regulators see this as the creation of a monopoly?
Read more in the Company Town article...