LOS ANGELES–Live Nation, the live event company spun off from Clear Channel, has announced it has entered into a definitive merger agreement to acquire HOB (House of Blues) Entertainment, Inc. for an aggregate purchase price of $350 million in cash. The transaction is expected to close by the end of 2006. It was a move that took many people by surprise, especially since HOB took themselves off the market after soliciting offers last year. HOB operates 10 venues under the House of Blues brand in cities such as Las Vegas, Los Angeles, Chicago and Orlando, and eight amphitheaters in cities including Atlanta, Toronto, San Diego and Dallas. The acquisition will allow Live Nation to expand its presence in the growing mid-size venue business and fill in geographic gaps in its existing amphitheater network.
Gary Bongiovanni, editor of Pollstar, credits this expanded control as a motivation in Live Nation's decision to approach HOB with a significantly larger offer than they made last year, but doesn't think that means Live Nation will be taking programming duties away from House of Blues personnel, or downplaying with the House of Blues brand. "House of Blues has one of the best-known names out there and very good bookers," Bongiovanni said. "Why mess with success?"
Jack Gannon, senior vice president of marketing at House Of Blues reports that HOB is still moving forward to further their brand, with work on a Dallas club already underway for an expected opening in Spring '07 and a ground-breaking for a new club in Houston happening soon.
Live Nation chief executive officer Michael Rapino commented: "We have great respect for the House of Blues employees and what they have accomplished and we look forward to welcoming them into the Live Nation family."
"This represents a compelling opportunity to grow our brand and accelerate the expansion of our club business, both in the United States and abroad," said House of Blues chief executive officer Greg Trojan. "Together, we will be able to take live music to a new level, delivering more music on more dates in more local venues."
Live Nation can be found at www.livenation.com online, and House of Blues is at www.hob.com. For corporate info on Live Nation, including their purchase announcement, click here. For company info about House of Blues, visit www.hob.com/aboutHOB/.
