Live Nation’s Reported SMG Bid Doesn’t Faze Investors (Much)
News that Live Nation may be bidding on facility management giant SMG didn’t appear to have a major effect on stock price at the end of trading Nov. 29, although volume was much heavier than normal.
The day started with shares trading at $46.43 and within an hour the price spiked to $46.99, dropping back to roughly the day’s opener. After 2 p.m., shares tumbled a bit to end trading at $45.68 – down 75 cents from the previous day’s close.
A lot of those shares traded hands, though, with a volume on the day of 2,814,605 – as compared with an average volume of 1,749,912.
Overall, the day was a mixed one on Wall Street, with the Dow Jones index up 103.97 points, but NASDAQ down 87.97 at closing bells.
A report published by Sports Business Journal late in the day Nov. 28 said that Live Nation had submitted a bid to purchase SMG, the largest facility management firm in the world. Bids were due Nov. 28.
A successful bid would immediately place Live Nation at the top of the facility management world that is currently led by SMG, AEG, Spectra and Pollstar parent company Oak View Group.
A Nov. 6th report in the Sports Business Journal estimated the venue management company’s potential worth at $750 million based on its EBITDA, but it’s been speculated that a Live Nation acquisition of SMG could potentially attract the attention of federal regulators.
LYV stock traded flat during the morning hours of Nov. 30