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Live Nation

Prezi for Entrepreneurial Finance
by

Mike Schnell

on 21 June 2014

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Transcript of Live Nation

Company Overview
Company Review Treat as a Venture Capital Review

Briefly describe Company -10

Discuss Management team 10

Discuss Market Potential -10
Growing or shrinking
Barriers to entry

Discuss Products 10
Is there a competitive advantage

Review Financials at least 5 years 15
Profit
Cash position
Liquidity
Enough information to support your position
Industry Comparisons

SWOT Analysis 15
Strengths
Weaknesses
Opportunities
Threats

Value Company 10
Book Value
Market Value
Potential Value

State Summary 5
Invest or not to invest

Presentation 15
Professional
Entertaining
Keeping the Class interested
The world's leading live entertainment and eCommerce company
Comprised of many subsidiaries including four major players:
Ticketmaster
Live Nation Concerts
Artist Nation
Live Nation Network
Live Nation Management Team
Michael Rapino
CEO, President, Director
Joe Berchtold
Cheif Operating Officer
John Hopmans
Executive Vice President
Michael Rowles
Executive Vice President
Kathy Willard
Chief Financial Officer
Ron Bension
Mark Campana
Arthur Fogel
Nathan Hubbard
Simon Lewis
John Reid
Alan Ridgeway
Bob Roux
Russell Wallach
Mark Yovich
Management team members that are
Presidents of subsidiaries that
make up Live Nation Entertainment
Market Potential
What is Live Nation
Competitive Advantage
SWOT Analysis
Strengths
Weaknesses
Opportunities
Threats
Conclusion
Entertainment
Artist
Management
Ticket
Sales
Concert Promotion
and
Venue Operation
E-Commerce
Sponsorships
- Exclusivity agreements at most major venues around the country
- Lack of strong governmental regulation/tight connections in D.C.
- Controls artists' tours from coast to coast
- Continuous acquisitions solidifies the company position in the industry
- many barriers to entry

- with the decline of record sales, artists are more and more compelled to give live performances to increase revenue

- growing popularity of festivals, especially related to EDM in the United States (Insomniac)
- Subsidiary companies complement each other perfectly

- Exclusivity rights at concert venues

- Concentration and horizontal integration growth strategies

- Strong brand identification
- bad economy

- increasing number of start ups/third party options competing

- rapidly changing public tastes

- unanimous negative attitudes towards the company by artists, venues, and consumers
- Net losses for the past eight years

- High long-term Debt

- High Interest Expenses
Although there is a current competitive advantage, the long term debt is too much to overcome
We would NOT invest in Live Nation Entertainment.
Income Statement
Balance Sheet
Growing Revenues ~9.4%
Growing Cost of Revenue ~4.6%
Gross Profit Margin: 25% Ave.
Net Profit Margin and ROE both negative due to Net Loss
Very high SG&A Expense
$0 on R&D
Statement of Cash Flows
Current Ratio above 1 for the past 3 years (almost 1 in 08 and09)
P/E: -16.67
$44.6 Mill in Working Capital (0.8% of Total Revenue)
Long-term debt
Cash Flowing
High capital expenditure
Kept $662 Mill in cash over the past 5 years
Full transcript