Live events sector
The UK’s Competition and Markets Authority is to investigate the recently announced acquisition of the Isle of Wight Festival by Live Nation. The CMA said it was: “considering, pursuant to section 22 of the [2002 Enterprise] Act”, whether the merger of Isle of Wight Festival Ltd and Live Nation/Denis Desmond’s LN-Gaiety Holdings Ltd “has resulted or may be expected to result in a substantial lessening of competition in any market or markets in the United Kingdom”. The live music major has expanded its UK festivals portfolio considerably in recent years, mainly via LN-Gaiety, its joint venture with Irish music industry veteran Denis Desmond, who now heads up Live Nation’s UK operation. LNE owns festivals including Creamfields, Dowlnload and Wireless in the UK and subsidiary Festival Republic runs the Reading, Leeds and Lattitude festivals and over 85 festivas worldwide.
LNE describes itself as “the largest live entertainment company, operates concert promotions, venue operations, sponsorship, ticketing solutions
The CMA says the two companies are currently prohibited from taking any actions which may “lead to the integration of the Isle of Wight Festival business with the Live Nation business” or “transfer the ownership or control of the Live Nation business or the Isle of Wight Festival business or any of their subsidiaries” until its investigation is complete.
The 2017 Isle of Wight 2017 festival will be headlined by Rod Stewart, Arcade Fire, David Guetta and Run-DMC and will attract upwards of 40,000 attendees.