Concert and ticketing giant Live Nation Entertainment Inc. is nearing a deal to acquire a stake in the events company that puts on the Electric Daisy Carnival dance music festival, a person with knowledge of the matter confirmed.
Beverly Hills-based Live Nation would purchase a roughly 50% interest in Insomniac Events. The Los Angeles company produces electronic dance music concerts at venues across Southern California and elsewhere. The Wall Street Journal, which first reported news of the pending sale, said Live Nation is paying $50 million for the stake in Insomniac.
Both Live Nation and SFX Entertainment had previously been mentioned as potential bidders for the electronic music events powerhouse. A 2010 iteration of the Electric Daisy Carnival rave drew as many 200,000 to the Los Angeles Memorial Coliseum.
Electronic dance music has only grown in popularity since then. A 2012 Electric Daisy rave in Las Vegas hosted more than 300,000 people.
However, Insomniac, which is headed by Pasquale Rotella, has been plagued by troubles in recent years. The Los Angeles Times reported in February that since 2006, at least 14 people who went to concerts produced by Rotella and Reza Gerami of Go Ventures have died from overdoses or in other incidents related to drugs.
Rotella and Gerami and others were indicted in March 2012 on bribery charges related to raves at the Coliseum and the Sports Arena. They are alleged to have made payments to a stadium manager but have pleaded not guilty.
In February, Insomniac said it would move its Beyond Wonderland rave from San Bernardino after complaints about drug use and noise.
Live Nation declined to comment. Insomniac did not immediately respond to requests for comment.
Hispanic #1 Breaking News for Entrepreneurs, Professionals and Small Business Owners - HispanicBusiness.com
OCTOBER 30, 2014
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