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Anschutz company to sell AEG
By CMU Editorial | Published on Wednesday 19 September 2012
The Anschutz Company has revealed plans to sell one of its core assets, the Anschutz Entertainment Group, which includes the world’s second biggest live music promoter AEG Live, as well as various interests in the sports sector and an extensive network of sports and live entertainment venues. The company should fetch “several billion dollars” according to the Wall Street Journal.
The firm has hired the services of the Blackstone Group to advise on the deal, and it’s expected that private-equity set ups, other entertainment groups and real estate companies will all be interested in acquiring AEG, though there are currently no plans to split the group for sale, so a buyer would have to be able to bid for the whole outfit. Anschutz bosses reportedly hope to complete any sale sometime next year.
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 continued: “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”.
Meanwhile Tim Leiweke, CEO of AEG itself, said: “AEG is a proven innovator in real estate, sports and live entertainment, and is at the forefront of shaping the dynamics of these industries. Live entertainment is the economic driver of the music industry, and fan participation and experience are the cornerstones of professional sports – our platform regularly brings fans, sponsors and world-class talent together to create unparalleled opportunities in both segments”.
He added: “AEG’s model drives significant value and growth across all of our assets by enhancing the overall experience for audiences, artists and teams, as well as bringing tangible benefits to our partners, ranging from sponsors to municipalities, across the globe. With the AEG platform, we are able to successfully undertake transformational projects that revolutionise markets by creating true entertainment destinations for consumers, while positively regenerating neighbourhoods through projects such as LA Live in Los Angeles and The O2 in London”.
