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Activist ValueAct spots an overlooked opportunity at Liberty Live Group How the move might pay off

The History of Liberty Media Group and Live Nation Entertainment

Liberty Media Group was founded in 1991 by John C. Malone. Malone is a renowned media mogul who has played a significant role in shaping the entertainment industry.

Effective governance is key to long-term success in business.

ValueAct’s approach to corporate governance is centered around the idea that effective governance is essential to long-term success.

The ValueAct Philosophy

ValueAct’s philosophy is built around the idea that effective governance is essential to long-term success. This philosophy is reflected in the firm’s approach to corporate governance, which is centered around the following key principles:

  • Long-term focus: ValueAct takes a long-term view when making investment decisions, considering the potential long-term impact of its investments on the company’s governance and operations. Thoughtful and diligent approach: ValueAct is known for its thoughtful and diligent approach to investing, taking the time to thoroughly research and evaluate potential investments.

    ValueAct’s investment in Liberty Live is a strategic move to gain access to Live Nation’s vast network of venues and talent. This move is significant because it allows ValueAct to expand its presence in the live entertainment industry.

    Live Nation is the largest live entertainment company in the world, with a diverse portfolio of artists and events.

    The Rise of Live Performances

    In recent years, the music industry has undergone a significant transformation. The rise of live performances and touring has become the most lucrative way for artists to earn money. This shift is largely due to the increasing popularity of live events, which have become a major draw for fans and a significant source of revenue for artists.

    The DOJ’s Case Against Live Nation and Ticketmaster

    The Department of Justice (DOJ) has been investigating Live Nation and Ticketmaster for several years, alleging that the two companies have engaged in anti-competitive practices. The DOJ’s case centers around the alleged abuse of market power, particularly in the secondary ticketing market. The DOJ claims that Live Nation and Ticketmaster have engaged in exclusive agreements with artists and promoters, limiting the availability of tickets to their own platforms. The companies have also allegedly used their market power to suppress competition from smaller ticketing companies.

    Live Nation’s Venue Expansion: A Significant Investment in the Live Entertainment Industry.

    The Rise of Live Nation’s Venue Expansion

    Live Nation has been aggressively expanding its venue portfolio in recent years, with a significant increase in capital expenditures (capex) to support this growth. The company’s capex has risen by 48% over the past two years, indicating a substantial investment in new venues and infrastructure.

    Key Statistics

  • Total debt has tripled since 2015, from $4 billion to $2 billion. Total debt has almost doubled since 2019, from $2 billion to $4 billion. Capex has increased by 48% over the past two years. ### The Benefits of Venue Expansion*

    • The Benefits of Venue Expansion

    While the short-term costs of building new venues can be significant, the long-term benefits are substantial.

    The Tracking Stock: A Discounted Investment Opportunity

    The tracking stock, a financial instrument that allows investors to participate in the performance of a specific business segment, has gained significant attention in recent years. One such tracking stock is Liberty Media’s Live Nation tracking stock, which trades at a significant discount to the parent company. This article will delve into the details of the tracking stock, its benefits, and potential risks, as well as explore the implications of its discount and the upcoming spin-off.

    Benefits of Tracking Stocks

    Tracking stocks offer several benefits to investors, including:

  • Increased liquidity: Tracking stocks can provide investors with a more liquid investment option, as they are often traded on major exchanges and can be easily bought and sold. Diversification: By investing in a tracking stock, investors can gain exposure to a specific business segment, which can help to diversify their portfolio. Flexibility: Tracking stocks can be traded on a variety of platforms, including online brokerages and trading apps, making it easy for investors to buy and sell. ### The Discount: A Potential Opportunity*

    • The Discount: A Potential Opportunity

    The Live Nation tracking stock trades at a significant discount to the parent company, Liberty Media. This discount can be attributed to various factors, including:

  • Lack of visibility: The tracking stock is not as well-known as the parent company, which can make it less attractive to investors. Limited upside: The tracking stock’s upside potential is limited, as it is tied to the performance of a specific business segment.

    The Rise of 13D Monitor

    In the world of shareholder activism, few names are as synonymous with influence and expertise as Ken Squire. As the driving force behind 13D Monitor, a prominent research firm specializing in shareholder activism, Squire has been at the forefront of the industry for decades. With a keen eye for identifying trends and patterns, Squire has built a reputation for providing actionable insights that help investors make informed decisions.

    The 13D Activist Fund

    But Squire’s impact extends far beyond his research firm. He is also the mastermind behind the 13D Activist Fund, a mutual fund that pools its resources into a diverse portfolio of activist investments. This fund allows individual investors to participate in the world of shareholder activism, providing a unique opportunity to engage with companies and influence their direction. Key features of the 13D Activist Fund include: + A diversified portfolio of activist investments + A focus on long-term value creation + A commitment to transparency and accountability + A team of experienced professionals with a deep understanding of the activist investment landscape

    The Power of Shareholder Activism

    Shareholder activism is a powerful tool for driving change in the business world.

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