AEG Live - Entertainment Giant For Sale

On Tuesday, Anschutz Company announced that it would be selling off the Anschutz Entertainment Group, more commonly known as AEG Live.

Philip Anschutz

Run by multibillionaire Philip Anschutz, Anschutz Company is a holding company based out of Denver, Colorado. The company has a stake in a variety of different industries including telecom, energy, and entertainment.  The entertainment segment of the company, which is operated under the Anschutz Entertainment Group, includes the promoting of concerts and other events, a number of sports teams in the US and Europe, and over 100 live-event venues such as the Staples Center located in Los Angeles.

But the big question in the industry is who could take over the sports and live-entertainment giant? It’s not that AEG Live is unattractive to investors. It has held on as the world’s second largest promoter for all twelve years of its existence and has produced some of the highest grossing tours in the last ten years.

What becomes a problem is that Anschutz wants to find a buyer to purchase AEG Live in its entirety. The company announced they would reach a sale agreement with “the qualified party best able to reflect the full value of AEG and fully committed to working with AEG’s management team as it pursues its long-term business objectives” (as quoted in an article from ESPN Los Angeles).

Staples Center. Los Angeles, California

 There are a number of industry speculations as to who could take over the company, which is expected to sell for $7 or $8 billion. One company whose name is sure not to be on the list is Live Nation Entertainment. After their battle with regulators for a merger between Ticketmaster and Front Line Management, it’s easy to see that Live Nation would have a hard time convincing regulators that their request to purchase AEG would not bring them excess market power.

However, with Live Nation out of the running that still leaves private-equity firms, other large entertainment companies, and private investors. So as the future of AEG Live hangs in the balance it will be interesting to see over the next few months whether the Anschutz Company is able to find a single buyer or if they will settle for a split. 

- Lisa -