It's been revealed that owner Anschutz wants to sell AEG to one party, is in no particular hurry to sell, is committed to finding the right buyer and is expecting to pocket between $7 billion and $8 billion for the sale.
The American music giant who have a controlling share in a dozen festivals including Scotland's Rock Ness festival, California's Coachella Valley Music and Arts Festival, and owns the O2 Arena in London, and the MEN Arena in Manchester. The also are partners in a joint venture Kilimanjaro Live Limited and own stakes in various festivals including Sonisphere, Bloodstock, and Wakestock as well as a 34% stake in the Los Angeles Lakers basketball team, and David Beckham's LA Galaxy team. Their entire venue portfolio of arenas, festivals, theatres, stadiums and clubs on five continents exceeds 100, and they say they have 42 million fans visiting annually.
The President of the Anschutz Company, Cannon Y Harvey, said in a statement, "Given the success of the management team and employees in establishing AEG as one of the premiere real estate development, live sports and entertainment platforms in the world, as well as the value AEG has created with the strategic assets that comprise its platform, this is an appropriate time to transition AEG to a new qualified owner."
He added, "This process represents a unique opportunity to maximise value for all concerned and will allow us to assure that, like the Anschutz Company, the new owner will have the financial resources, commitment and vision to support AEG's management team as it continues to grow the businesses of AEG and the power of its brands. We will conduct this process in a manner that avoids disruption of the day-to-day operations of AEG and its constituencies. The Anschutz Company has the highest confidence in AEG's potential and its management, and will only undertake a transaction that reflects this confidence."
Commentators believe that AEG's largest competition Live Nation Entertainment formed in 2005 as a spin-off from Clear Channel Communications will not be bidding because of competition/monopoly laws, especially as they've already struggled to convince regulators that their merger with Ticketmaster/Front Line Management would not bring it excessive market power in the live-entertainment business, to the disadvantage of artists and consumers.