Ticketmaster is one of the largest ticket sales and distribution companies in the world. Founded in 1976, it sells tickets for concert, sports, and theater events on behalf of event organizers. Ticketmaster has grown into a global powerhouse through strategic partnerships, acquisitions, and investments from major financial institutions and corporations.
Early Investors
In its early days, Ticketmaster received investments from some noteworthy individuals and companies who saw the potential for growth in computerized ticketing services. Here are a few of Ticketmaster’s early investors:
- Fred Rosen – Co-founder and CEO of Ticketmaster. Rosen’s experience in the ticket service industry helped drive Ticketmaster’s early success.
- Gordon Gunn – Early investor and chairman of the board at Ticketmaster. Gunn was a lawyer with experience in venture capital.
- Bass Brothers – The billionaire Bass family, including brothers Robert and Lee Bass, were early investors in Ticketmaster in 1978.
- Paul Allen – Microsoft co-founder Paul Allen invested in Ticketmaster in 1982 through his investment firm Vulcan Ventures.
- Quantum Computer Services – Early Internet company and creator of AOL was an investor in the 1980s.
These early investments gave Ticketmaster the capital needed to scale up operations and begin buying up ticket companies and promoters in the 1980s as the ticketing industry began to consolidate.
Expansion Through Acquisitions
A major part of Ticketmaster’s growth came through acquisitions of and mergers with major regional ticketing companies in the US. This allowed Ticketmaster to expand its reach and consolidate power in the primary ticket market. Here are some of Ticketmaster’s key acquisitions over the years:
- 1982 – Acquired Ticketron, one of its main competitors, for $4 million.
- 1991 – Bought controlling interest in Ticketron for $110 million after it spun off as a separate company in the 1980s.
- 1993 – Acquired Ticketmaster’s Southwest competitor, Select-A-Seat, for $40 million.
- 1995-97 – Spent $300 million to acquire major regional ticketing companies like TicketCenter, TicketsWest, and CitySearch.
- 1999 – Merged with SFX Entertainment in a $4.5 billion deal. SFX was the largest concert promoter at the time.
These acquisitions were often financed through loans, investments, and stock deals with banks, private investors, and other corporations.
Investment from Microsoft
In 1997, Ticketmaster received a major boost from an investment by Microsoft Corporation. As Ticketmaster was looking to finance more acquisitions and global expansion, Microsoft invested $300 million for 10% ownership in the company.
Microsoft’s stake enabled Ticketmaster to continue acquiring major regional ticketing companies and fuse them into a dominant national brand. In exchange, Microsoft secured a lucrative partnership deal to run Ticketmaster’s website and internet ticketing services on the Microsoft platform.
Takeover by InterActiveCorp (IAC)
In 1998, Barry Diller’s pioneering internet holding company InterActiveCorp (IAC) took majority control of Ticketmaster in a deal worth over $300 million. IAC acquired 48% of Ticketmaster and remaining public shares through a special stock purchase. This gave IAC full ownership and took Ticketmaster private as a wholly-owned subsidiary of IAC.
IAC provided further investment to fund Ticketmaster’s growth online and develop new services like ticket reselling. As an internet conglomerate, IAC transformed Ticketmaster into an e-commerce powerhouse in the 2000s.
Merger With Live Nation
In a massive $2.5 billion deal in 2008, Ticketmaster merged with the world’s largest concert promoter Live Nation to form the new entity Live Nation Entertainment. The deal united Live Nation’s concert promotion resources with Ticketmaster’s distribution network.
The merger was funded by several key investments:
- Liberty Media – Liberty invested $183 million for a 30% minority stake in Live Nation as part of the merger deal.
- Madison Dearborn Partners – The private equity firm invested $200 million and helped finance the transactions.
- Oppenheimer Holdings – Investment bank contributed $100 million in convertible notes.
The Live Nation-Ticketmaster merger, which had to be approved by the Department of Justice, created a vertically integrated powerhouse that controlled most major ticket sales and concert promotion in the live entertainment business.
Key Current Investors
Ticketmaster today operates as a division of Live Nation Entertainment, which continues to be backed by several major institutional investors. Some of the key shareholders and financial supporters of Ticketmaster and Live Nation include:
Investor | Ownership Stake |
---|---|
The Vanguard Group | 5.1% of shares |
Orbis Investment Management | 4.1% of shares |
Akre Capital Management | 3.7% of shares |
Invesco Ltd. | 3.0% of shares |
Goldman Sachs | 2.5% of shares |
AQUCHS LLC | 2.3% of shares |
As a large cap publicly traded company, institutional investors like mutual funds, hedge funds, pensions, endowments, and investment banks hold a significant portion of Live Nation’s shares and bonds. These major Wall Street institutions provide ongoing capital support that allows Live Nation and Ticketmaster to maintain their dominant industry position.
Private Equity Investments
In addition to public investors, several private equity firms have made major investments Live Nation Entertainment in recent years. Some notable private equity investors include:
- Silver Lake Partners – Hold a $100 million convertible bond stake in Live Nation.
- WestStreet Capital Partners VII – Private equity arm of Goldman Sachs invested $100 million.
- Vivendi SA – French mass media conglomerate continues to hold 7% of Live Nation stock.
- Mark Shapiro and Irving Azoff – Former Live Nation/Ticketmaster executives hold a joint 5% ownership stake.
Having private equity partners allows Live Nation to tap into large pools of capital for financing acquisitions, paying down debt, and expanding operations.
Current Ownership Structure
Today, Live Nation Entertainment operates a number of ticketing services and brands including Ticketmaster, Ticketweb, TicketsNow, and more. The current ownership breakdown of Live Nation is:
- Public Shareholders – Approximately 67% of shares held by institutional and retail investors
- Private Equity Firms – Hold around 10-15% of equity and debt
- Company Insiders – Executives hold small percentages of shares
- Partners – Minority stakes held by promoters like Madison Square Garden (8%) and Saudi Arabia (5%)
Even as a publicly traded company, major investors continue to hold significant influence and equity in Live Nation Entertainment. Its ticketing divisions like Ticketmaster benefit from the financial resources this massive entertainment conglomerate can tap into.
Conclusion
Ticketmaster has grown from a small ticketing startup into a global ticket sales powerhouse through ongoing investments, mergers, and acquisitions over its history. Early investors saw the potential for computerized ticketing to disrupt the industry. Strategic deals with major corporations like Microsoft and IAC provided capital that fueled Ticketmaster’s expansion.
Today, institutional investors, private equity firms, financial services corporations, and company insiders hold a majority stake in Ticketmaster’s parent Live Nation Entertainment. Public market investors bring liquidity while private partnerships supply extra capital for growth. Ticketmaster enjoys support from some of the financial world’s most powerful investors.