Business

Hollywood agent Ari Emanuel leaves Live Nation’s board of directors under Judiciary antitrust oversight

Hollywood super agent Ali Emmanuel and one of his lieutenants resigned from Live Nation’s board of directors after the Justice Department expressed antitrust concerns about directing at a concert promoter.

The Justice Department said Monday that Emmanuel and Mark Shapiro, president of Emmanuel’s entertainment conglomerate Endeavor, both held seats on Live Nation’s board of directors, thereby creating a “coordinated board of directors.” ..

Specifically, the Justice Ministry said Endeavor, it was Owns the Ultimate Fighting Championship, Sports and fashion event company IMG and Hollywood talent agency WME have a business that overlaps with ticket, event promoter and venue operator Live Nation.

The two companies “promote and sell tickets and VIP packages, including tickets, accommodation and travel accommodation, for live music, sports and other entertainment events,” DOJ said.

For example, Endeavor sells its VIP experience to the UFC Battle, New York Fashion Week, for $ 660 million through its on-location hospitality company, which it acquired in January 2020. On-location hosts annual events such as the Super Bowl, Ryder Cup, NCAA Final Four, and Coachella Music Festival. Recent S-1 filing..

Live Nation resigns from Emmanuel June 3rd SEC FilingBut did not give a reason. The company said Emmanuel would not be reelected at the annual shareholders meeting on June 10, and resigned “as a result of disagreements with the company on issues related to the company’s operations, policies and practices. I didn’t. “

The timing of Shapiro’s resignation has not yet been announced, but it is understood that he resigned on June 18.

Festival participants will participate in Coachella.
Endeavor sells VIP packages to events like Coachella, raising concerns about antitrust laws by the DOJ.
Coachella Getty Images

“These resignations ensure that Endeavor and Live Nation compete independently. Executives are not allowed to retain board positions in companies that compete with each other,” said Deputy Attorney. Deputy Richard Powers said. “This division enforces antitrust laws to ensure that all companies compete on the proposal.”

Live Nation declined to comment.

“There are no violations of the law, but we understand and respect the Justice Department’s concerns about the similarities of our current businesses,” said an Endeavor spokesman.

according to Report from the billboardEmmanuel’s departure from Live Nation’s board of directors was well planned.Emmanuel, who Endeavor was released on April 29thResigned in time for the final share award of 4,470 shares issued in June 2020, giving him about $ 400,000.

But that total is peanuts when compared to what Emmanuel, who joined Live Nation’s board of directors in 2007, brought in just before the pandemic of Live Nation’s business shut down.

March 3, 2020, just 10 days before Live Nation Removed all touring shows from the road According to the coronavirus To SEC filingEmmanuel sold 71,394 shares of Live Nation and 97% of its stake for approximately $ 58.26 per share, bringing the total to $ 4.2 million.

Two weeks later, Live Nation’s share price plummeted to a low of $ 29.50 on March 18. Billie Eilish, Jason Aldean, Zac Brown Band, Sher, Kiss, Post Malone, Lynyrd Skynyrd, Chris Stapleton and others have been canceled at Rockstep. Live Nation’s Ticketmaster business has also collapsed due to the pandemic. Offer refunds to all ticket owners Of canceled events such as Broadway shows and concerts.

Live Nation raised $ 1.2 billion in May 2020 and another $ 500 million in late December 2020, providing enough liquidity to survive the pandemic. Since then, Live Nation’s share price has risen to about $ 88 per share. Had Emmanuel waited for 15 months, or until June 3, to monetize his entire holdings, he would have left with more than $ 6.6 million.

Hollywood agent Ari Emanuel leaves Live Nation’s board of directors under Judiciary antitrust oversight

Source link Hollywood agent Ari Emanuel leaves Live Nation’s board of directors under Judiciary antitrust oversight

Back to top button