AEG And SMG Merge To Become The World’s Largest Venue Company
LiveNation has been almost an overwhelming force in the concert business over the last decade, with smaller competitors like AEG and SMG nipping at its heals. Those days may be over however, as AEG and SMG owner private equity firm Onex have agreed to merge. The new company, dubbed ASM Global, will now control over 300 of the largest and most profitable music and sports venues worldwide.
Among the venues controlled are NFL stadiums such as Chicago’s Soldier Field and the New Orleans Superdome, London’s Wembley and O2 arenas, Los Angeles’ Staples Center and Greek Theater, NBA arenas like the Barclays Center, convention centers, and performing arts venues in North America, South America, Europe, Asia, and the Middle East.
While all of that is pretty impressive, it’s not a total merger, as it doesn’t include AEG’s developed entertainment districts in Los Angeles, Hamburg, London, and Berlin, or any of the company’s real estate. The new company also won’t manage any new venues currently under development.
And it’s not a sure thing either, as it still requires regulatory approval not just from the Federal Government, but from the dozens of cities that actually own the venues that ASM will control.
The interesting thing here is that while LiveNation and AEG often compete for talent and tours, both companies need each other since LiveNation is more of a promoter while ASM controls the venues. As a result there’s an interesting synergy between the two.
Will this merger mean lower ticket prices for the consumer? Probably not. In fact, it will probably be totally transparent to the average concert goer, at least at first. In fact, it might not even mean much to the talent in the middle, but it does mean that the concert side of the music business and sports is consolidating. That usually means that the end user gets taken advantage of in the end.
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