Saudi Wealth Fund achieves a profit of almost 1 billion. USD with Live Nation stock sale

A wealth fund run by the royal family of Saudi Arabia has made nearly $1 billion in profits after selling its stake in Live Nation Entertainment (NYSE: LYV ). The public investment fund (PIF) had bought a significant stake in the entertainment giant and Ticketmaster parent company in the spring of 2020 and has reportedly more than tripled its investment by exiting after a recent strong rally.

According to documents filed with the Securities and Exchange CommissionPIF has fully liquidated its position in LYV after completing the sale at the end of September. PIF bought 12.34 million shares of LYV in April 2020, making it the third-largest shareholder in the entertainment giant at the time, with around 5.7 percent. It bought these shares at a time when the stock had fallen below $40/share due to the sudden halt to live events caused by the COVID-19 pandemic.

The return of live events, combined with skyrocketing revenues (fueled by business practices that have led to an antitrust suit filed by the Justice Department and a majority of state attorneys general seeking to break it up and Ticketmaster) have sent LYV stock through the roof . It had rebounded from its pandemic low in early 2021, then rose as high as $120/share later in the year. It dipped after several notable scandals (Astroworld and the heightened condemnation from lawmakers and regulators in the wake of the disastrously rigged Taylor Swift Era Tour ticketing process being particularly notable), but has been red-hot lately, rising more than 30% since early September to record highs above $130/share.

Based on recent applications, it is believed that PIF sold its share at a price per stock at about $109.49 in September with a final value of approximately $1.39 billion, which would mean a profit of approximately $930 million for the Saudi fund run by Crown Prince Mohammad bin Salman.

Liberty Media, which has been Live Nation’s largest shareholder for a number of years, has announced its own plans to spin off its LYV holdings into a new “Liberty Live” group. This will include the company’s 69.65 million shares in Live Nation as well as its recently acquired 90 percent stake in Quint – a “world-class fan experience and corporate client entertainment activities” based in Colorado.

Despite the rising share prices, there is still significant danger for Live Nation Entertainment and Ticketmaster. Its entire business model has been accused of violating antitrust laws, and the Justice Department lawsuit has a broad, bipartisan array of attorneys general supporting it. While business executives like Joe Berchtold have expressed optimism that the incoming Trump administration will go easier on Ticketmaster and its parent company than the Biden administration has, consumer advocates have expressed confidence that reigning in the company’s overwhelming dominance is too broadly supported by both consumers and legislators to be set aside for a more “traditionalist” agenda regarding corporate oversight.

Read more | Live Nation Execs Hope Trump Wins Spells Doom For Antitrust Case |
| What They Say” State Attorneys General Statement on Live Nation-Ticketmaster Antitrust Lawsuit |

“The DOJ’s case against Live Nation has a good chance of surviving an administration transition intact,” Diana Moss of the Progressive Policy Institute told TicketNews shortly before the November election. “This contrasts with the other digital technology monopoly cases on deck at antitrust agencies. Live Nation’s demonstrated anti-competitive practices present more familiar territory to the courts in terms of bringing strong theories and facts so that a win is likely and looks good politically .

“Furthermore,” Moss continued, “fan and artist outrage over high fees and no choice in ticketing would be difficult for any administration to ignore.”