Send me real-time posts from this site at my email

Live Nation (LYV) Recommences Acquisition of 51% Stake in OCESA

Live Nation Entertainment, Inc. LYV recently resumed its previously announced acquisition of OCESA Entretenimiento, a Mexican entertainment company, in which broadcaster Televisa has a 40% stake. The deal is valued at nearly $444 million. Following the news, the stock gained 3.5% on Sep 13. Shares of the company have surged 51.4% in the past year, compared with the industry’s rally of 36.6%.

This acquisition, which was earlier announced in July 2019, was stopped due to the coronavirus pandemic. The company anticipates to seal the acquisition by late 2021 or early 2022. However, the deal is subject to regulatory approvals. During the prior negotiations, the deal had received a green signal from the regulatory bodies.

Michael Rapino, president and CEO, Live Nation Entertainment said, “After serving as Live Nation's touring, festival, and ticketing partner in Mexico for years, we know OCESA is a stellar business with deep roots in live entertainment in Mexico.”

OCESA Buyout to Boost Live Nation’s Latin America Presence

OCESA has a strong presence in Latin America. Prior to the pandemic, the company promoted more than 3,100 events for nearly 6 million fans across Mexico and Colombia. It has a strong business portfolio in ticketing, sponsorship, food & beverage, merchandise, and venue operation.  The company has 13 premier venues across Mexico.

The company promotes concerts for famous artists like Coldplay, Paul McCartney, and U2. With the reopening of Mexico, it has a robust lineup of events for the rest of 2021. OCESA's primary ticketing business, Ticketmaster Mexico, sells nearly 20 million tickets annually.

This acquisition will bolster Live Nation’s fan base. In August, 8 million fans attended Live Nation events. The company is very optimistic about reaching the August figure in September as well.

Image Source: Zacks Investment Research

Prospects Appear Bright in 2022 & 2023

Live Nation is optimistic about growth in 2022 and 2023. Robust fan engagement is likely to continue into 2022 and 2023, as arenas, amphitheaters, and stadiums are likely to witness double-digit growth in its show count and ticket sales relative to 2019 levels. The company is so confident about its prospects that it is extending planning into 2023. The company has sold more than 25 million tickets for shows during the second half of 2021. For 2022, it has already sold 14 million tickets, resulting in $2.1 billion of event related deferred revenues.

Live Nation carries a Zacks Rank #3 (Hold).

3 Robust Leisure Picks

Bluegreen Vacations Holding Corporation BVH has a projected 2021 earnings growth rate of 172%. It sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

RCI Hospitality Holdings, Inc. RICK has a Zacks Rank #1 and a projected long-term earnings growth rate of 12%.

SeaWorld Entertainment, Inc. (SEAS) has a Zacks Rank #1 and a projected 2021 earnings growth rate of 176.4%.

Tech IPOs With Massive Profit Potential

In the past few years, many popular platforms and like Uber and Airbnb finally made their way to the public markets. But the biggest paydays came from lesser-known names.

For example, electric carmaker X Peng shot up +299.4% in just 2 months. Think of it this way…

If you had put $5,000 into XPEV at its IPO in September 2020, you could have cashed out with $19,970 in November.

With record amounts of cash flooding into IPOs and a record-setting stock market, this year’s lineup could be even more lucrative.

See Zacks Hottest Tech IPOs Now >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Live Nation Entertainment, Inc. (LYV): Free Stock Analysis Report
RCI Hospitality Holdings, Inc. (RICK): Free Stock Analysis Report
SeaWorld Entertainment, Inc. (SEAS): Free Stock Analysis Report
Bluegreen Vacations Holding Corporation (BVH): Free Stock Analysis Report
To read this article on click here.
Zacks Investment Research

Welcome! Is it your First time here?

What are you looking for? Select your points of interest to improve your first-time experience:

Apply & Continue