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Saudi Arabia’s Investment Fund Acquires 5.7% Stake in Live Nation – Variety

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The Public Funding Fund, Saudi Arabia’s sovereign-wealth fund, just lately bought a big stake in Stay Nation Leisure, the world’s largest live-entertainment firm, in accordance with SEC filings launched Monday.

Public Funding disclosed that it owned a 5.7% stake within the firm, a complete of 12.Three million shares. The fund’s stake in Stay Nation rose above 5% as of April 16. Public Funding is now Stay Nation’s third-largest shareholder. Liberty Media, which owns a 33% stake, is the biggest.

Stay Nation shares had been lifted by the funding information on Monday morning, rising together with the broader market with good points within the 3% vary. Shares had been hovering across the $39 mark in early buying and selling. Stay Nation’s share worth is down about 45% for the 12 months so far amid the pandemic-related lockdown that shuttered a lot of the promotion large’s enterprise. In mid-February, earlier than the coronavirus disaster started in earnest within the U.S., Stay Nation shares had been above $75.

Contacted by Selection, a rep for Stay Nation had no remark. Public Funding didn’t instantly reply to requests for remark.

The live-entertainment enterprise — the first income generator of the music {industry} — has been hit exceptionally exhausting by the coronavirus pandemic, with nearly each tour and live performance happening over the following few months postponed or cancelled. Whereas touring-industry commerce publication Pollstar projected a $12.2 billion 12 months for the {industry} based mostly on live performance grosses from the primary fiscal quarter of 2020 (which was largely unaffected by the coronavirus lockdown), these projections modified nearly in a single day: It now lowers that estimate to $9.9 billion if touring resumes in late Could, and $3.Three billion if the remainder of the 12 months is darkish — the latter of which is “a worst-case state of affairs and definitely not anticipated,” the report asserts. Nonetheless, that worse-case state of affairs depicts a virtually $9 billion loss for the {industry} based mostly on ticket gross sales alone.

Stay Nation CEO Michael Rapino has made aggressive strikes in current weeks to bolster confidence and provides help to the {industry}, starting from foregoing his $Three million annual wage for the 12 months to buying $1 million within the firm’s inventory himself to making a $10 million fund for laid-off live performance employees referred to as Crew Help; he has additionally repeatedly assured the employees on convention calls that there is not going to be layoffs. Nonetheless, even when quarantines are lifted by late spring, it’s exhausting to say when folks will really feel safe sufficient to return to mass gatherings.

 

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