Live Nation to Buy HOB Entertainment for $ 350 Million

LOS ANGELES: Concert producer, Live Nation Inc. on Wednesday announced that it has agreed to buy House of Blues operator HOB Entertainment Inc. for $ 350 million in cash.

HOB runs 10 House of Blues-brand music venues and amphitheaters in major metropolitan areas including Las Vegas, Los Angeles and Chicago.

According to Live Nation, the acquisition will expand its reach in the growing mid-size venue business and fill geographic gaps in its amphitheater portfolio.

The company expects the deal, which is expected to close by the end of 2006, to boost earnings within the first year.

Live Nation owns, operates and has booking rights to some 150 venues in the U.S. and abroad and produces concerts, touring Broadway shows and sports events.

Live Nation CEO, Michael Rapino, commented, "We have great respect for the House of Blues employees and what they have accomplished and we look forward to welcoming them into the Live Nation family."

"This represents a compelling opportunity to grow our brand and accelerate the expansion of our club business, both in the
United States and abroad," said House of Blues CEO Greg Trojan.

"Together, we will be able to take live music to a new level, delivering more music on more dates in more local venues."

The company said Goldman, Sachs & Co. and Morrison & Foerster LLP acted as advisors to the deal.

LYV is currently up $ 0.25 and trading at $ 21.22.