Daily Pulse

Sale of AEG Possible

Anschutz Corp. is reportedly giving consideration to selling Anschutz Entertainment Group.

The sale of AEG would include the sale of AEG Live, the world’s No. 2 concert promoter behind Live Nation. Deliberations are said to be in their early stage, and Anschutz Corp. may not ultimately pursue a transaction, according to a report in the Wall Street Journal.

This is not the first time rumors of an AEG sale have been floated.  The big question is who would want to write such an enormous check to make a deal happen.  John Malone, who is Live Nation’s largest shareholder, has enough coins in his saddlebags to make a run at AEG but that raises obvious anti-trust concerns.  Jim Dolan’s Cablevision  / MSG empire could come to the table but that also might draw regulatory scrutiny.

A sale price would be in the many billions of dollars depending on what assets are included.  AEG has a huge venue portfolio that includes varying degrees of ownership or operating rights to premier venues around the world.  Venues range from Staples Center on the West Coast to the Prudential Center and the new Barclay’s Center on the East Coast.  The O2 arenas in London and Berlin are part of a global footprint that also includes major venues in China and Australia. 
 
There are the festivals like Coachella and a team of highly experienced talent buyers and tour producers that give the concert promotion side of the business an aura of quality.
 
The company is at a critical juncture in a push to build Farmer’s Field for a yet to be acquired NFL team in Los Angeles as the crowning jewel for L.A. Live. 
 
The Amgen Cycling race along with David Beckham and the L.A. Galaxy are all part of a stunning array of assets.  Anschutz also owns the NHL champion L.A. Kings, who just got locked out by a strike that will likely delay the start of the season.
 
Reclusive Denver-billionaire Phil Anschutz made most of his initial fortune in oil and gas.  He also has non-AEG properties in the Regal Entertainment Group movie theatre chain and hotel operator Xanterra Parks & Resorts.
 
The Fourth Period obtained an internal memo that states motivation: 
 
“In an internal memo to all employees obtained by TFP, President/CEO Tim Leiweke conveyed the primary reason for the sale.

“This decision reflects the attractiveness to a new owner of the significant growing global demand for live sports and entertainment and our unique strategic platform in this space to further maximize the AEG Value proposition,” related the Kings’ NHL Board of Governors representative.

Leiweke went on to state that all current AEG executives will remain in their roles through the sale process and set no timetable for completion of the transaction.

 
Here’s some various takes:
 
 
 
 
 
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