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 Executive summary TELEMATICS
Live music entertainment related opportunities in numbers
Favorable market environment and improving M&A Table of contents
04 MARKET OUTLOOK AND SUMMARY 83% 3.0% 40 05 DRIVERS OF LIVE MUSIC ENTERTAINMENT SHARE OF TOURING PROJECTED CAGR AVE. ANNUAL GLOBAL MARKET REVENUES OF TOP 20 2016-2020 TRANSACTIONS MONEY MAKERS 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 INCREASING STRONG GROWTH M&A ACTIVITY UP IMPORTANCE RELATED ACTIVITIES Total live music revenue The two main drivers: Artists are now more will rise at a 3.0% CAGR geographic expansion 11 TRANSACTION DENSITY BY AREA OF OPERATION dependent on earnings through 2020, and tapping into from live music exceeding USD related revenue PEER TRANSACTION MULTIPLES performance than ever 28 billion, globally. streams. 12 before. CASE STUDIES: 13 LIVE NATION ENTERTAINMENT 17 CTS EVENTIM 19 DEAG 21 ULTRA MUSIC FESTIVAL 22 RED BULL 23 APPENDIX 24 ABOUT IMAP
2 IMAP IMAP IMAP 3 LIVE MUSIC ENTERTAINMENT Outlook & summary Market drivers LIVE MUSIC ENTERTAINMENT
Market outlook and summary 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 old - a record high - and global literacy has improved significantly. Combined with strong economic growth Favorable market environment and improving M&A activity this drives a need for culture and entertainment Festivals offerings, especially in Asia and Africa. definition: The appetite for physical events and venues has Public transaction The most active Total live music For active live In terms of number increased. The music industry has shifted to live “SPECIAL SEGMENT OF THE LIVE multiples are investor in revenue is entertainment of transactions, the events, and revenues from live shows now surpass MUSIC ENTERTAINMENT BUSINESS: scarce, the known acquisitions has expected to players, diverse outstanding results recorded music sales in some regions. In Europe, AN ORGANIZED SERIES OF CONCERTS ones range on a been Live Nation, rise at a 3.0% activity related of 2014 might ticket revenues for live music performances are now TYPICALLY HELD ANNUALLY IN THE healthy interval: expanding further CAGR through acquisitions return in 2017 and more than twice of recorded music sales. SAME PLACE.” 2020, exceeding could be a viable 2018. 6x-15x EV/EBITDA into ticketing and promotion. USD 28 billion, option for growth, Festivals are an increasing asset for cultural tourism globally. Despite especially in case worldwide, and developing cultural infrastructure is the overwhelming of investing in especially important for emerging countries, which expansion of the ticketing, venues will attract more than half of international tourists by digital world, live and promoters 2030. entertainment with good track events give fans a records and Source: IMAP, EY – Cultural Report, PWC: Global entertainment type of experience networks. and media outlook 2016-2020 that is unparalleled and engaging.
4 IMAP IMAP 5 LIVE MUSIC ENTERTAINMENT Revenue streams of top artists Festival industry trends LIVE MUSIC ENTERTAINMENT
Revenue streams of top artists Festival industry trends
Live entertainment is the main driver of revenues Trends driving the future of festivals can be grouped into four sections
Taylor Swift Kenny Chesney The Rolling Stones Billy Joel ARTISTS SOCIAL MEDIA TECHNOLOGY NEW DIMENSIONS One Direction Grateful Dead Artists are turning their Fans expect a mix of Immersive theater, Virtual Strong competition Luke Bryan gaze to touring to take options and more Reality and Augmented and festival export (e.g. U2 advantage of the massive personalized experiences Reality will influence live Lollapalooza going to Adele jump in artist fees music performances Berlin) Maroon 5 Social media provides Lack of strong headliners hard cash benefits Blockchain solutions Reconsider catering Jason Aldean (announcement dates to event organizers, may transform ticketing options: in-house or Shania Twain are earlier: 8-9 months especially in ticket sales solutions and licensing outsource, “food-line-ups” Dave Matthews Band instead of 3-4) – channeling royalty collection for or new lines: veggie, bio, Madonna influenced by cheap public performances organic, local Elton John airline tickets Video content and live Increasing staff numbers Rush broadcasting on mobile Hybrid music events bring to secure better Ed Sheeran Activism (political) is is becoming increasingly in bigger audiences and expected to revive the live important more money (eg. film, experience derived from Juan Gabriel music community media and video games) professionalism and Florida Georgia Line security needs Fleetwood Mac 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 challenges posed Sales Streaming Publishing royalties Touring and are more willing to participate in auxiliary Mobile technology by extreme weather U.S. revenues only, Revenue from merchandising, synchronization and sponsorship is not included. Source: Billboard.com activities (Lady Gaga’s improves the conditions Dive Bar Tour, sponsored overall attendee by Bud Light). Brands experience (tickets, Increase revenues from will become even more cashless payment and up- potential upgrades (VIP intertwined with artists to-minute event guides) and VVIP)
RFID technology and Niche, high-end boutique smart cards add value gatherings: targeting Touring revenues for top artists The total revenue of Top20 artists At the same time for mid-tier acts, once inside the event the wealthier and family are the main source of income. for 2015 according to Billboard’s that are far from this ranking, demographics estimates was USD 448 million. live performances drive sales for Live streaming events On average the split was: recorded music and generate keep fans connected and engaged digitally - 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 IMAP IMAP 7 LIVE MUSIC ENTERTAINMENT How to grow Number of acquisitions LIVE MUSIC ENTERTAINMENT
How to grow: acquisitions vs. organic growth Number of acquisitions by live entertainment and event organization players Expanding in the live music entertainment business has two different paths
In 2017 we see an uptick in the number of deals by industry players*
ORGANIC GROWTH / IN-HOUSE 90 ACQUISITIONS DEVELOPMENT 80 Decide on strategic directions incl. Decide on strategic directions incl. PROCESS geographies geographies Research potential targets Develop new content, businesses, find 70 Start negotiations new markets Pay, manage and/or integrate Invest in implementation and go to 60 market
50
40
Fewer management issues as usually Flexibility 30 PROS owner remains in management role Higher chance to reach better returns / Better estimate / limit on spending margins Well established business model Less dependent on available, good quality, 20 Profit in place – more predictable independent businesses on sale business 10
Strong competition from established Time heavy exercise for management 0 CONS players Higher risk as concept is not proven 2012 2013 2014 2015 2016 2017 Difficult pricing if it has to be based on poor financials * Covering global transactions where percentage of acquired stake is 51% or above Source: Zephyr / IMAP
The focus of this sector report
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.).
8 IMAP IMAP 9 LIVE MUSIC ENTERTAINMENT Benchmarking Benchmarking LIVE MUSIC ENTERTAINMENT
Universe of music event organization Transaction density by area of operation related activities There are clear directions that the main players follow Live entertainment involves a wide range of businesses
VENUE OPERATOR VENUE OPERATOR TOUR / CONCERT / TICKETING (BRANDED / EVENT / FESTIVAL TOUR / CONCERT / EVENT TICKETING (BRANDED / WHITE LABEL ORGANIZER OR / FESTIVAL ORGANIZER WHITE LABEL SOLUTION) PROMOTER OR PROMOTER SOLUTION)
OTHER FORMATS ON-SITE PAYMENT OTHER ON-SITE PAYMENT SOLUTIONS FORMATS SOLUTIONS FESTIVALS / FESTIVALS / CONCERTS / CONCERTS / OTHER EVENTS OTHER EVENTS ARTIST MANAGEMENT/ MOBILE APPS AND ARTIST AGENCY ONLINE SOLUTIONS MANAGEMENT/ MOBILE APPS AND AGENCY ONLINE SOLUTIONS
EQUIPMENT PR & MARKETING (INCL. DIGITAL) EQUIPMENT PR & MARKETING (INCL. DIGITAL) MERCHANDISING & LICENSING MERCHANDISING Low High & LICENSING Number of examples See appendix for detailed description of the categories.
After studying the value chain of the event market We have not seen examples for enterprise level- The analysis of live music entertainment related and the M&A activities of large international players, investments in: activities resulted in 10 areas or activities via which we have identified potential categories for expansion: Equipment, with strong physical characteristics an industry player or outsider can enter. Geographical expansion and extending event (sound, light, stage, security and facility) offering via acquisition of: tour promoters, concert, Artist management or agency These activities range from acquisition of a event and festival organizers ticketing solution to the equipment needed for Taking advantage of other revenue streams in As they are competing for live entertainment events, staging a production. the value chain: ticketing, merchandising, PR and it might be worth considering entering the market of: marketing Non-music event segment (theatre, circuses, The decision should be made wisely, eg. revenue New, supplementary businesses: on-site payment, shows, comedy, discotheque) stream distribution could show surprising results, mobile apps and online solutions Sport events according to a German survey* 25% (!) of all revenues come through ticketing. Other directions that might be relevant in the long run: Venue operation * Berthold Seliger “Das Geschäft mit der Musik“ via DZ Bank
10 IMAP IMAP 11 LIVE MUSIC ENTERTAINMENT Peer transaction multiples Live Nation’s current coverage LIVE MUSIC ENTERTAINMENT
Peer transaction multiples Live Nation’s current coverage
EV/EBITDA Date Target name Country Target business description Acquiror Deal type EV (EUR M) (x) 53 transactions made since 2006
Tour / concert / event / festival organizer or promoter
2014 Zibrant Ltd GB Event management services Zebra 1234 Ltd Acquisition 2.5 6.0 100% VENUE OPERATOR 2014 Kilimanjaro Live GB Entertainment events promotion DEAG Concerts Acquisition 6.7 13.7 TOUR / CONCERT / TICKETING (BRANDED / Ltd services, Live music events GmbH 51% promotion services EVENT / FESTIVAL WHITE LABEL ORGANIZER OR SOLUTION) 2012 Hammersmith GB Live music and performance venue Stage C Ltd Acquisition 23.2 6.0 Apollo Ltd 100% PROMOTER
Ticketing
2016 Best Union IT Event organisation and Bidco Acquisition 40.2 9.7 OTHER Company Spa management services, Online 75% ON-SITE PAYMENT FORMATS electronic ticketing services SOLUTIONS 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 ARTIST 100% MANAGEMENT/ MOBILE APPS AND 2011 West End GB Theatre ticket booking services Encore Tickets Acquisition 11.0 8.6 AGENCY ONLINE SOLUTIONS Theatre Ltd 100% Bookings Ltd
Other formats
2015 Stage NL Theatrical and live entertainment CVC Capital 60% 737.8 13.1 EQUIPMENT PR & MARKETING Entertainment production services holding Partners Ltd BV company Ambassador (INCL. DIGITAL) Theatre Group Ltd MERCHANDISING Diversified & LICENSING 2017 See Corporation BM Artist management services, Event Giant Lead Acquisition 27.4 12.0 Ltd organisation services, Film and TV Profits Ltd increased Number of transactions programme production services from 34% to since 2006 Coverage 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 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
12 IMAP IMAP 13 LIVE MUSIC ENTERTAINMENT Live Nation transaction history Live Nation transaction history LIVE MUSIC ENTERTAINMENT
Live Nation transaction history 1/3 Live Nation transaction history 2/3
Date Target name Country Target business description Acquiror Deal type Date Target name Country Target business description Acquiror Deal type 2006 HOB US Concert promotion services, LIVE NATION INC. Acquisition 100% Tour / concert / event / festival organizer or promoter ENTERTAINMENT Live music venues operator, 2017 ISLE of WIGHT GB Live music event operator LN-GAIETY HOLDINGS Acquisition unknown INC. Restaurants operator FESTIVAL LT D majority stake % 2006 CONCERT NL Concert production services LIVE NATION INC. Acquisition 50% PRODUCTIONS 2017 BLUESTONE IL Live entertainment management LIVE NATION Acquisition unknown INTERNATIONAL ENTERTAINMENT services ENTERTAINMENT INC. majority stake % INC. 2017 CUFFE AND GB Artist promotion services, Events LIVE NATION Acquisition 100% 2009 GREAT BIG SHOWS US Concerts and theatrical events AC ENTERTAINMENT Acquisition 100% TAYLOR LTD organisation services ENTERTAINMENT INC. LLC promoter, Corporate event INC. 2017 BOTTLEROCK NAPA US Live rock music festival operator LIVE NATION Acquisition unknown organiser, Logistics services, VALLEY ENTERTAINMENT INC. majority stake % Theatrical events producer Ticketing 2016 SECRET SOUNDS AU Festivals, music agencies and LIVE NATION Acquisition 51% GROUP PTY LTD artists management agency AUSTRALASIA PTY LTD 2017 TICKETPRO AS CZ Online ticket reservation platform LIVE NATION Acquisition 100% services, Music rights owner, operator, Ticket reservation ENTERTAINMENT INC. Musical festivals organisation offices operator services 2016 TICKETHOUR SA GR Ticketing software developer LIVE NATION Acquisition 100% 2016 NOUS SAS FR Music events production services LIVE NATION Acquisition 100% ENTERTAINMENT INC. ENTERTAINMENT INC. 2015 FRONT GATE US Festival ticketing services TICKETMASTER Acquisition 100% 2016 BIG CONCERTS ZA Live entertainment promotion LIVE NATION Acquisition 51% TICKETING ENTERTAINMENT INC. INTERNATIONAL services ENTERTAINMENT INC. SOLUTIONS LLC (PTY) LTD 2015 UNIIVERSE CA Event ticketing platform operator TICKETMASTER Acquisition 100% COLLABORATIVE ENTERTAINMENT INC. 2016 SWEDEN ROCK SE Live rock festival and music LIVE NATION Acquisition unknown LIFESTYLE INC. FESTIVAL AB entertainment operator ENTERTAINMENT INC. majority stake % 2014 SEATWAVE LTD’S GB Online ticket sales platform TICKETMASTER UK LTD Acquisition 100% 2016 AC ENTERT- US Concert promoting services LIVE NATION Acquisition unknown ASSETS operator AINMENT INC. ENTERTAINMENT INC. majority stake % 2014 EVENTJOY INC. US Mobile event ticketing and TICKETMASTER Acquisition 100% 2014 LIVE NATION TH International concerts and shows BEC-TERO Joint venture 100% organisation application developer, ENTERTAINMENT INC. BEC-TERO promoter ENTERTAINMENT PCL Online event ticketing and ENTERTAINMENT LIVE NATION (HK) LTD organisation platform operator CO., LTD 2014 SHERPA.BE BE Online live event ticketing platform TICKETMASTER UK LTD Acquisition 100% 2013 VOODOO MUSIC & US Music, arts and entertainment LIVE NATION Acquisition 100% operator ARTS EXPERIENCE promoter ENTERTAINMENT INC. 2012 FRONT GATE US Festival ticketing services ANSCHUTZ Acquisition 100% 2012 HARD EVENTS Music festival operator LIVE NATION Acquisition 100% TICKETING ENTERTAINMENT ENTERTAINMENT INC. SOLUTIONS LLC GROUP INC. C3 PRESENTS LLC 2013 BDG MUSIC GROUP EE Live concerts promoter LIVE NATION Acquisition 51% 2011 SERVITICKET SA ES Ticket retailer TICKETMASTER Acquisition 100% OÜ ENTERTAINMENT INC. ENTERTAINMENT INC. 2012 MICHAEL COPPEL AU Artists concert promoter LIVE NATION Acquisition 100% 2010 TICKETNET SAS FR Online event ticketing services LIVE NATION Acquisition 100% PRESENTS ENTERTAINMENT INC. ENTERTAINMENT INC. 2011 FRONT LINE US Entertainment management LIVE NATION Acquisition unknown 2009 TICKETMASTER US Online ticket reservation platform, LIVE NATION INC. Acquisition 100% MANAGEMENT services ENTERTAINMENT INC. remaining stake % ENTERTAINMENT Online ticket reservation services GROUP INC. INC.
2009 BIG CHILL GB Music festival operator LIVE NATION INC. Joint Venture 100% 2008 SLO LIMITED INC.’S US VIP ticketing services TICKETMASTER GROUP Acquisition 100% REPUBLIC LTD GAIETY INVESTMENTS ASSETS INC. LT D 2008 GET ME IN! LTD GB Online ticket vendors TICKETMASTER UK LTD Acquisition 100% 2008 LUGER INC AB SE Live entertainment promoter LIVE NATION INC. Acquisition increased 2008 TNOW US Online ticket vending services TICKETMASTER GROUP Acquisition 100% from 49% to 100% ENTERTAINMENT INC. GROUP INC. 2008 MOONDOG SE Live entertainment promoter LIVE NATION INC. Acquisition increased ENTERTAINMENT from 25% to 100% 2007 PACIOLAN INC. US Venue management and online TICKETMASTER GROUP Acquisition 100% AB ticket sale software developer INC.
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 IMAP IMAP 15 LIVE MUSIC ENTERTAINMENT Live Nation transaction history CTS Eventim’s current coverage LIVE MUSIC ENTERTAINMENT
Live Nation transaction history 3/3 CTS Eventim’s current coverage
Date Target name Country Target business description Acquiror Deal type 22 transactions made since 2006 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. VENUE OPERATOR TOUR / CONCERT / TICKETING (BRANDED / 2006 TICK TACK TICKET ES Events tickets management and TICKETMASTER GROUP Acquisition 100% SA distribution services INC. EVENT / FESTIVAL WHITE LABEL ORGANIZER OR SOLUTION) Mobile apps and online solutions PROMOTER 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% OTHER application developer ENTERTAINMENT INC. ON-SITE PAYMENT FORMATS 2014 YOURTROVE US Online personalized search results LIVE NATION Acquisition 100% SOLUTIONS 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% ARTIST developer ENTERTAINMENT INC. MANAGEMENT/ MOBILE APPS AND 2012 NETDO LI Online concert set list sharing LIVE NATION Acquisition 100% AGENCY ONLINE SOLUTIONS 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 EQUIPMENT PR & MARKETING 2011 BIGCHAMPAGNE US Market consultancy services, LIVE NATION Acquisition 100% (INCL. DIGITAL) LLC Market research services, Online ENTERTAINMENT INC. communities consumer data MERCHANDISING software developer & LICENSING 2007 ECHOMUSIC LLC US Creative positioning and branding TICKETMASTER GROUP Acquisition unknown services, Entertainment marketing INC. stake % Number of transactions services, Music and merchandise since 2006 Coverage digital distribution services, Online advertising services, Online fan club
Artist management / agency CTS’s mission is to become Europe’s largest 2008 FRONT LINE US Artist management services TICKETMASTER GROUP Acquisition 30% eCommerce ticketing provider. They are realizing MANAGEMENT LLC INC. growth potential by: 2007 SIGNATURES US Music and celebrity licensing and LIVE NATION INC. Acquisition 100% Increasing market share - new products, such as NETWORK INC. event merchandising company sport events, theater, fairs, cinema, etc. Changing the value chain - new channels, such as kiosk systems, internet ticket shop, merchandising, Source: Zephyr 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
16 IMAP IMAP 17 LIVE MUSIC ENTERTAINMENT CTS Eventim transaction history DEAG’s current coverage LIVE MUSIC ENTERTAINMENT
CTS Eventim transaction history DEAG’s current coverage
Date Target name Country Target business description Acquiror Deal type 9 transactions made since 2006 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 VENUE OPERATOR TOUR / CONCERT / TICKETING (BRANDED / 2014 Fullsteam Records OY’s FI Live performance and music FKP Scorpio Sweden AB Acquisition 100% fullsteam agency division promoting agency EVENT / FESTIVAL WHITE LABEL ORGANIZER OR SOLUTION) 2014 Holiday On Ice NL Ice entertainment production Medusa Music Group Acquisition 50% Productions BV services Gmbh PROMOTER
2013 ABC Production AG CH Event management services CTS Eventim AG Acquisition 80%
2008 Palazzo Produktionen DE Live concert promoter FKP Scorpio Acquisition increased OTHER Gmbh Konzertproduktionen Gmbh from 51% to 100% ON-SITE PAYMENT FORMATS SOLUTIONS 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 ARTIST 2016 Starticket AG and CH Ticket Marketing Services, Ticketing Ticketcorner Holding AG Joint venture 100% MANAGEMENT/ MOBILE APPS AND Ticketcorner Holding AG agent Starticket AG AGENCY ONLINE SOLUTIONS 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% EQUIPMENT PR & MARKETING business unit (INCL. DIGITAL) 2014 See Tickets Nederland BV NL Musical, theatre and other CTS Eventim AG Acquisition performance ticketing services MERCHANDISING 2014 Entradas See Tickets SA ES Musical, theatre and other CTS Eventim AG Acquisition & LICENSING performance ticketing services Number of transactions
2014 Top Tickets France SAS FR Musical, theatre and other CTS Eventim AG Acquisition since 2006 Coverage 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% DEAG covers the entire value chain in the field of marketplace platform operator, Live Entertainment: from concerts via record sales, Online and mobile electronic ticketing rights exploitation, sponsorship and merchandizing marketplace software developer to ticketing. 2010 Ticketone Spa IT Online ticketing reservation services, Eventim Online Holding Acquisition increased Online ticketing reservation services Gmbh from 49.824% to Social media and digital customer communication platform operator 99.65% become increasingly important and are continuously extended by DEAG through its digital strategy. 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% Including subsidiary transactions 2008 Cardplus OY FI Plastic card manufacturer, which CTS Eventim AG Acquisition 100% Source: Zephyr 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% IMAP 19 LIVE MUSIC ENTERTAINMENT DEAG transaction history An alternative LIVE MUSIC ENTERTAINMENT
DEAG transaction history An alternative: UMF became international without acquisition
Date Target name Country Target business description Acquiror Deal type Global edition of the UMF electronic music event, 20 countries in 5 continents Entertainment events promotion Acquisition 2014 Kilimanjaro Live Ltd GB services, Live music events DEAG 51% Concerts Gmbh promotion services VENUE OPERATOR TOUR / CONCERT / TICKETING (BRANDED / Acquisition EVENT / FESTIVAL WHITE LABEL Concert and event organization DEAG Deutsche increased 2013 Aio Group AG CH holding company Entertainment AG from 52% to ORGANIZER OR SOLUTION) 100% PROMOTER DEAG Deutsche Blue Moon Joint venture 2013 AT Tour promotion services Entertainment AG Entertainment 100% Ms Karin Edtmeier OTHER ON-SITE PAYMENT Wizard Promotions FORMATS DEAG Deutsche Acquisition SOLUTIONS 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% ARTIST DEAG Deutsche Gold Entertainment Joint venture MANAGEMENT/ MOBILE APPS AND 2010 DE Live concert promotion services Entertainment AG Gmbh 100% SONY Deutschland Gmbh AGENCY ONLINE SOLUTIONS
Manfred Hertlein Tour and concert organization GOLD Entertainment Acquisition 2010 Veranstaltungs DE services Gmbh 66.6% Gmbh EQUIPMENT PR & MARKETING The Classical Ringier Holding AG Joint venture 2009 CH Classical music producer (INCL. DIGITAL) Company AG DEAG Classics AG 100%
DEAG Deutsche MERCHANDISING Switzerland Classics Joint venture 2008 CH Classical concert organizer Entertainment AG Ms & LICENSING AG 100% Dina Thoma-tennenbaum
Original event: Ultra Music Festival held every Source: Zephyr 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
20 IMAP IMAP 21 LIVE MUSIC ENTERTAINMENT An alternative Appendix LIVE MUSIC ENTERTAINMENT
Appendix Universe of music event organizing related activities An alternative: Red Bull sponsored events as competitors TOUR / CONCERT / EVENT / FESTIVAL ORGANIZERS AND VENUE OPERATOR Red Bull sponsors, organizes and acquires events 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 SPORTS ADVENTURE MOTOR CULTURE MUSIC 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 RED BULL MEDIA tour promoter
EQUIPMENT PR & MARKETING (INCL. Linked to the actual DIGITAL) performance: sound, Tap all possible revenue sources stage, light Red Bull has became a significant event sponsor MERCHANDISING & LICENSING Other supporting and owner aiming to further strengthen its brand Tap all possible revenue sources facilities, security, etc. recognition. Red Bull is focusing on: Good supplement to ticketing 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 IMAP IMAP 23 LIVE MUSIC ENTERTAINMENT About IMAP About IMAP LIVE MUSIC ENTERTAINMENT
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.
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24 IMAP IMAP 25
IMAP SEPTEMBER 2017
LIVE MUSIC ENTERTAINMENT REPORT AUTHORS:
IMAP Gábor Szendröi Phone: +34 936 026 710 IMAP Hungary E-mail: [email protected] [email protected] www.imap.com Gabriella Hajdu-Tar IMAP Hungary [email protected]