Saudi Arabia’s Public Investment Fund (PIF) has completely divested its position in Live Nation Entertainment, ending a highly profitable investment that has more than tripled in value since the early days of the COVID-19 pandemic.
The exit, disclosed in a Securities and Exchange Commission (SEC) filing on Thursday (November 14), marks the end of the sovereign wealth fund’s strategic stake in the live entertainment giant. Ticket Master.
On April 16, 2020, the fund was valued at $925 billionget more than 12.34 million Live Nation stock, then valued at $449 millionor $36.40 piece. This gave the oil-rich country 5.7% Bought shares in Live Nation and became the fourth largest shareholder Liberal media, Vanguard Group and BlackRock.
The investment is part of PIF’s broader strategy during the pandemic, which includes taking positions in other industries impacted by the coronavirus. The fund acquired stakes in a number of companies, including carnival cruise line, Walt Disney, Marriott International, Booking Holdingsand transportation giants union pacific and boeing company. The fund also invests in energy companies blood pressure, totaland Statoil During this period.
Recent filings show that as of September 16, 2024, PIF has slightly increased its holdings to 12.57 million shares, representatives 5.43% The equity value is US$1.28 billion. However, by September 30, the kingdom, run by the crown prince mohammed bin salmanthe position has been completely closed. Based on Live Nation’s closing price $109.49 On that date, the final equity value is approx. US$1.38 billioncausing profits to exceed $930 million for the Saudi Arabian Fund.
The fund maintains investments in other media and entertainment industries, including formula a groupwhich supervises formula one racing Racing Operations and Satellite Broadcasting Provider SiriusXM.
The exit comes as Live Nation shares have made a strong recovery from their pandemic lows.
In a related development, Liberty Media announced plans to spin off its Liberty Live Group Become a separate public entity. This reorganization will involve the transfer of its subsidiaries Quint Transfer from Formula 1 to Liberty Live Group in exchange for certain private assets, with a cash consideration to be determined based on future valuations.
“Separating the Liberty Live Group into a separate public entity will simplify Liberty Media’s capital structure, should reduce the discount to the net asset value of Liberty Live shares and enhance the trading liquidity of both entities.” Greg MaffeiPresident and CEO of Liberty Media, in a press release last week (November 13).
“Since acquiring Quint in January 2024, we have strengthened our relationship with Formula 1 and gained a deeper understanding of our fans and ticket demand trends, but Quint also complements our interest in Live Nation, particularly in Live Nation. This comes as Nation works to grow its hotel business.
After the reorganization, the new Liberty Live Inc. will control 69.6 million Shares in Live Nation as well as Quint and various other assets. At the same time, Liberty Media will retain its Formula 1 and MotoGP businesses, as well as the other assets of the Formula 1 Group.
The spin-off is expected to be completed in the second half of 2025, and both companies, Liberty Media and Liberty Live, are expected to remain on the Nasdaq Global Select Market, although Liberty Live may list on the OTC Market if the following conditions are met : Necessary.
The Saudi fund’s stake sale and Liberty Media’s restructuring mark a shift in Live Nation’s ownership landscape at a time when the live entertainment industry continues to demonstrate a strong post-pandemic recovery.
Live Nation third-quarter earnings per share $1.66exceeding Wall Street expectations. Adjusted operating income increased 4% annual increase arrive $909.8 milliondriven by a 39% AOI Jump from Concerts Department to $474.1 million.
But income has shrunk 6% annual increase arrive $7.65 billionLive Nation is calling it “the most active summer concert season ever.”
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