After many rumors of a bidding war between Live Nation, SFX and a few other companies, it’s now confirmed that Live Nation will be buying 50% of Insomniac for a cool $50 million.
Insomniac will be joining Gary Richards’ HARD Events, Cream, and Creamfields under the Live Nation umbrella once the deal is finalized.
Via: The Wall Street Journal
Electronic dance music has become a lucrative industry so it is no surprise that major corporations are now wanting a piece of the EDM pie. Last month, reports surfaced that companies like Live Nation Entertainment, SFX Entertainment, AEG Live and Red Light Management, were all bidding to buy anywhere from 50-100% of EDM giant, Insomniac Events. Sources are now claiming that Live Nation Entertainment may have actually acquired 51% ownership of Insomniac.
Insomniac Events, was founded 20 years ago by Pasquale Rotella, and is now reportedly valued somewhere between $70- $100 million. The company sold more than one million tickets last year to various events and their largest event, Electric Daisy Carnival in Las Vegas, had more than 300,000 people in attendance during the three-day festival.
The possible sale of Insomniac will be the latest notch on Live Nation’s bedpost, which currently also includes Los Angeles Based Hard Events, and British promoter Cream Holdings, the promoter behind Creamfields, both of which were bought in 2012. Earlier this year, Live Nation also signed a 25-year contract with San Manuel Amphitheater to hold EDM events at the venue. Conveniently, Insomniac’s Beyond Wonderland festival, which was previously held at the National Orange Show in San Bernardino, will be held at San Manuel Amphitheater on March 16th.
Pasquale Rotella has spoken out against corporate deals in the past, including during a panel discussion at the EDMbiz Conference last June.
Representatives from the companies have yet to comment on the matter.