rtmark
LearnBonds.com

Live Nation stock soars as Saudi fund snaps up $500m stake

Live Nation (NYSE: LYV) stock price soared following the announcement that Saudi Arabia’s sovereign wealth fund has taken a 5.7% stake in the world’s largest concert promoter, which is also parent to Ticketmaster.

The Saudi investment valued at $500m comes at a time when live events and concerts across the globe are canceled or rescheduled, with Los Angeles-based entertainment group with more than 30,000 events cancelled or postponed across the world. The Public Investment Fund (PIF), the Saudi vehicle steered by Crown Prince Mohammed Bin Salman, is now the third-largest stakeholder in the US company.

Stock in the Us firms closed 10% up at $42.01 on Monday.

Live Nation has scrapped planned blockbuster tours by stars such as Taylor Swift (pictured) and Justin Bieber amid the novel coronavirus, and also postponed summer festivals that includes Bonnaroo. Live Nation has a strong presence in Las Vegas theaters and in the music-festival industry. It is the only booking partner at Zappos Theater, where stars like Pitbull, Britney Spears, Shania, Twain, Jennifer Lopez, and many others have performed.

In recent weeks the PIF has been on a shopping spree, snapping up stakes in cash-strapped firms around the world. It has bought stakes in beleaguered cruise line operator Carnival and European oil companies such as Royal Dutch Shell and Total. It also agreed a £300m deal to buy a majority stake in English Premier League football club Newcastle United.

Live Nation President Joe Berchtold says the company has enough cash resources and ample liquidity to survive for the next few quarters even without a single concert. “We look at this on two different time horizons. One is a year from now, fifteen months from now, is we have the vaccine in place. We’re highly confident that concerts – 2021, 2022 will be bigger than ever,” Berchtold said.

Live Nation

The stock trading performance of the group has been hit hard by the health crisis as concerts and other events are either canceled or on hold with new dates. Live Nation stock price plunged close to 40% this year despite gains on Saudi investment.

Despite the bans on mass gatherings for an unspecified time, the rating agencies are showing confidence in its share price upside potential in days ahead due to its strong liquidity position. Cowen has an Outperform rating and $65 price target while Jefferies provides a price target of $48 a share.

If you plan to buy Live Nation after Saudi investment, you can check out our featured brokers here.

Trusted & Regulated Stock & CFD Brokers

Rating

What we like

  • 0% Fees on Stocks
  • 5000+ Stocks, ETFs and other Markets
  • Accepts Paypal Deposits

Min Deposit

$200

Charge per Trade

Zero Commission

Rating

64 traders signed up today

Visit Now

75% of investors lose money when trading CFDs.

Available Assets

  • Total Number of Stocks & Shares5000+
  • US Stocks
  • German Stocks
  • UK Stocks
  • European
  • ETF Stocks
  • IPO
  • Funds
  • Bonds
  • Options
  • Futures
  • CFDs
  • Crypto

Charge per Trade

  • FTSE 100 Zero Commission
  • NASDAQ Zero Commission
  • DAX Zero Commission
  • Facebook Zero Commission
  • Alphabet Zero Commission
  • Tesla Zero Commission
  • Apple Zero Commission
  • Microsoft Zero Commission

Deposit Method

  • Wire Transfer
  • Credit Cards
  • Bank Account
  • Paypall
  • Skrill
  • Neteller

Rating

What we like

  • Sign up today and get $5 free
  • Fractals Available
  • Paypal Available

Min Deposit

$0

Charge per Trade

$1 to $9 PCM

Rating

Visit Now

Investing in financial markets carries risk, you have the potential to lose your total investment.

Available Assets

  • Total Number of Shares999
  • US Stocks
  • German Stocks
  • UK Stocks
  • European Stocks
  • EFTs
  • IPOs
  • Funds
  • Bonds
  • Options
  • Futures
  • CFDs
  • Crypto

Charge per Trade

  • FTSE 100 $1 - $9 per month
  • NASDAQ $1 - $9 per month
  • DAX $1 - $9 per month
  • Facebook $1 - $9 per month
  • Alphabet $1 - $9 per month
  • Telsa $1 - $9 per month
  • Apple $1 - $9 per month
  • Microsoft $1 - $9 per month

Deposit Method

  • Wire Transfer
  • Credit Cards
  • Bank Account
Users should remember that all trading carries risks and users should only invest in regulated firms. Views expressed are those of the writers only. Past performance is no guarantee of future results. The opinions expressed in this Site do not constitute investment advice and independent financial advice should be sought where appropriate. This website is free for you to use but we may receive commission from the companies we feature on this site.
Avatar

Based in Saudi Arabia, Siraj has a strong understanding of and passion for accounting and finance. He has worked for international clients for many years on several projects related to the stock market, equity research and other business, accounting and finance related projects. Siraj is a published financial analyst on the world's leading websites including SeekingAlpha, TheStreet, MSN, and others.