NEW YORK (CelebrityAccess MediaWire) — The recent music business lull may have AEG in talks with major music companies about taking a minority stake in the business, according to The New York Post.
AEG Live is currently second to Live Nation as the largest live entertainment company in the world.
Sources familiar with the situation have said that AEG has been talking with Universal Music Group, Sony Music Entertainment, and Warner Music according the The Post.
The talks could result in either a sale to one of the major music companies or possibly a consortium of bidders, one executive close to the matter said according to The Post. The discussions are said to have been on and off with Universal for more than a year, but have broadened recently to include other labels.
A spokesman for AEG Live confirmed it had talked to some companies.
"There are a variety of substantial organizations that have contacted us over the years and recently about investment opportunities in AEG Live," the spokesman said according to The Post. "While we happen to have all of our funding in place and have no need for additional investors and have never found anybody to be a good fit, we continue to speak to many to determine if they would bring proper assets to the table to warrant consideration."
The spokesman added: "We're having the best run that we've ever had and the future is incredibly bright but you always look for ways to strengthen the organization."
A spokesman for Universal Music said: "We are not in discussions with them." Executives at Sony and Warner had no immediate comment according to The New York Post.
Speculation around AEG’s possible stake sale suggests that it could be driven by the company’s eagerness to raise capital while business is still prosperous, despite the recent deceleration.
Others believe a deal could improve AEG Live's competitive position with Live Nation, which recently gained federal approval for its merger with Ticketmaster.
AEG Live is responsible for around 29 venues across the country including Times Square’s Nokia Theater, and was behind the comeback tour by the late Michael Jackson and is fronting and a host of others such as Lady Gaga, The Black Eyed Peas, and Pitbull.
"The talks are still going on. There is no definitive agreement," warned one person close to the discussions according to The Post. –by CelebrityAccess Staff Writers
