Wall Street Rewards Live Nation VEEPS Acquisition [NYSE: LYV]
This week Live Nation acquired a majority stake in live concert streaming platform VEEPS and while the concert giant’s growth plans for the platform are unclear, Wall Street has rewarded the move.
Earlier this week, Live Nation’s share price hit an all-time high of $76.54, more than double the $29.50 low of March last year when the pandemic caused almost universal cancellation or postponement of live entertainment.
Why VEEPS? Why Now?
Now Live Nation has finally gotten into a live music business that Bandsintown, Mandolin, Maestro, StageIt. Nugs.net and others embraced 9 months ago, as artists scrambled to find ways to stay connected with fans and replace lost revenue.
“Livestreaming is a great complement to our core business, and essentially gives any show an unlimited capacity,” said Live Nation CEO, Michael Rapino.
“Looking to the future, live streams will continue to unlock access for fans – whether they are tuning into a sold-out show in their hometown, or watching their favorite artist play in a city halfway around the world,” said Rapino. “The most critical element of live streaming is the artist on stage, and with Live Nation’s unmatched inventory feeding into Veeps, together we will help fans enjoy more live music than ever before.”
It’s All About The Stock Price
Since the pandemic hit Live Nation has announced several new initiatives ranging from drive-in shows, the ‘Live From Home’ streaming hub, Ticketmaster’s SmartEvent technology, and now VEEPS.
While none have yet to significantly impact Live Nation’s COVID-decimated bottom line, each announcement has drawn positive media attention and excited investors.
Live Nation stock ended Thursday trading at $74.59.