Saudi Arabia’s Public Investment Fund (PIF) has completely divested its position in Live Nation Entertainment, capping off a highly profitable investment that more than tripled in value since the early days of the COVID-19 pandemic.
The exit, disclosed in an SEC filing on Thursday (November 14), marks the end of the sovereign wealth fund’s strategic stake in the live entertainment giant, which owns Ticketmaster.
On April 16, 2020, the fund, valued at $925 billion, acquired over 12.34 million shares in Live Nation, which at the time were valued at $449 million, or $36.40 apiece. That gave the oil-rich country a 5.7% stake in Live Nation, making it the fourth-largest shareholder behind Liberty Media, The Vanguard Group and BlackRock.
The investment was part of PIF’s broader strategy during the pandemic, which included taking positions in other COVID-impacted sectors. The fund acquired stakes in various companies including Carnival Cruise Lines, Walt Disney, Marriott International, Booking Holdings, and transportation giants Union Pacific and Boeing. The fund also invested in energy companies BP, Total, and Equinor during this period.
Recent filings show that as of September 16, 2024, PIF had slightly increased its position to 12.57 million shares, representing a 5.43% ownership stake valued at $1.28 billion. However, by September 30, the kingdom, run by Crown Prince Mohammad bin Salman, had completely liquidated its position. Based on Live Nation’s closing price of $109.49 on that date, the final stake was valued at approximately $1.38 billion, resulting in a profit exceeding $930 million for the Saudi fund.
The fund maintains investments in other media and entertainment properties, including stakes in Formula One Group, which oversees Formula One racing operations, and satellite radio provider SiriusXM.
The exit comes as Live Nation’s stock has shown strong recovery from its pandemic lows.
In related developments, Liberty Media announced plans to split off its Liberty Live Group into a separate public entity. The restructuring will involve the transfer of its subsidiary Quint from the Formula One Group to the Liberty Live Group, in exchange for certain private assets, with cash considerations to be determined based on future valuations.
“The split-off of Liberty Live Group into a separate public entity will simplify Liberty Media’s capital structure, should reduce the discount to net asset value of our Liberty Live stock and enhance trading liquidity at both entities,” said Greg Maffei, Liberty Media President and CEO, in a press release last week (November 13).
“Since acquiring Quint in January 2024, we have bolstered its partnership with Formula 1 and gained insights into our fans and ticket demand trends, but Quint is also complementary to our interest in Live Nation, especially as Live Nation works to grow its hospitality operations.”
Following the reorganization, the new Liberty Live Inc. will control about 69.6 million shares of Live Nation, along with Quint and various other assets. Meanwhile, Liberty Media will retain its Formula 1 and MotoGP operations, alongside other Formula One Group assets.
The split-off is expected to be completed in the second half of 2025, and both companies — Liberty Media and Liberty Live — are expected to maintain their presence on the Nasdaq Global Select Market, although Liberty Live may be quoted on the OTC Markets if necessary.
The Saudi fund’s stake sale and Liberty Media’s restructuring marks a shift in Live Nation’s ownership landscape, coming at a time when the live entertainment industry continues to show strong post-pandemic recovery.
In the third quarter, Live Nation reported earnings per share of $1.66, which beat Wall Street estimates. Adjusted operating income rose 4% YoY to $909.8 million, driven by a 39% jump in AOI from its concerts division to $474.1 million.
However, revenue shrank 6% YoY to $7.65 billion, during what Live Nation said was its “most active summer concert season ever.”
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