Bigger fish swallows local big fish
Live Nation Inc., the world’s largest concert promotion company, will announce today it is buying a majority stake in Dave Matthews Band manager and real estate mogul Coran Capshaw’s company Musictoday, which runs online stores, fan clubs, web sites, and offers other services such as ticketing and music downloading for over 700 clients, including The Rolling Stones, Eminem, Dave Matthews Band, Tiger Woods, Nine Inch Nails, and Jeff Gordon. The terms of the deal have not been disclosed yet, reports the Wall Street Journal, but the two companies have said that Musictoday had gross annual sales of more than $100 million last year.
Live Nation, once a subsidiary of Clear Channel Communications, became its own company less than a year ago. It operates 120 venues around the world, producing concerts, touring Broadway shows, and sporting events attended by nearly 60 million people annually. Just recently, Live Nation bought out concert promotion and venue company House of Blues for $350 million, as well as apparel company Trunk Ltd. The company boasts annual sales of $2.8 billion and has over 3,000 full-time employees.
Musictoday, which grew out of Capshaw’s merchandising business for the Dave Matthews Band, now employs over 200 people and operates out of 500,000 square feet of office and warehouse space.