The GrouponLive partnership is huge, but Liberty Media’s faith in Live Nation is the real reason that I have faith. Liberty Media already owns a controlling stake in Sirius XM, and has significant ownership interest in Barnes & Noble, Time Warner, Viacom, and Sprint Nextel, and for some reason they can’t seem to get enough of Live Nation. Liberty has increased its share in Live Nation several times since they initially bought 1.8 million shares in early 2011.
In fact, just recently on New Year’s Eve, when Irving Azoff, Live Nation’s executive chairman announced he was leaving, Liberty Media bought 1.7 million of his shares. After this latest purchase, Liberty holds a 26.4% stake in Live Nation, prompting rumors that a takeover might be next, similar to Liberty’s efforts in Sirius XM.
Between the Groupon partnership and Liberty’s faith in (or desire to possess) the company, Live Nation should be able to meet, and most likely exceed, the projections of its earnings growth and finally become profitable. If this happens quicker than analysts predict, it would be a major upside catalyst for the share price.
The article Will This Concert Promoter Finally Become Profitable? originally appeared on Fool.com and is written by Matthew Frankel.
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