Live Nation Entertainment, Inc. · NYSE:LYV
Live Nation Entertainment — Merger or Acquisition (February 2009)
21 slides from Live Nation Entertainment's merger presentation, Feb 10, 2009
Slide 1: Creating the World's Premier Live Entertainment Company
Exhibit 99.1 Creating the World’s Premier Live Entertainment Company
Slide 2: Transaction Overview
Transaction Overview Stock-for-Stock transaction valued at approximately $0.8B equity value; $2.5B enterprise value Consideration Each share of Ticketmaster Entertainment stock to be exchanged for 1.384x Live Nation shares (subject to adjustment at closing) Pro Forma Live Nation shareholders: 49.99%
Slide 3: Strategic Highlights
Strategic Highlights Creates world’s premier live entertainment experience and drives major innovations in ticketing technology, marketing and service Combines leading global concert business, global ticketing operations and artist management company Brings together artist-centric leadership team wi
Slide 4: Financial Highlights
Financial Highlights Significantly stronger financial position • Combined market cap of $0.8B; Enterprise value of $2.5B • Combined LTM (Sept 08) Revenue ~$6.0B¹ • Diversified Revenue base across all live entertainment genres • Combined LTM (Sept 08) Adjusted Operating Income ~$0.5B¹ Combines attrac
Slide 5: Creating the World's Premier Live Entertainment Company
Creating the World’s Premier Live Entertainment Company Artist Nation SPONSORSHIP Fan Concerts/ Concert Store Venues/ Ticketing Marketing Promotion Front Festivals Front Line Combined Global Fan Database 60MM+ 5
Slide 6: Combines Leading Global Concert Business with Leading Global Ticketing Operator and Management Company
Combines Leading Global Concert Business with Leading Global Ticketing Operator and Management Company Management Company Promotions Ticketing • Madonna • 47 Amphitheaters • 32 years of ticketing expertise • U2 • 11 House of Blues • More than 280 million • Jay-Z • 46 Clubs and Theaters tickets proce
Slide 7: Integrated Promotion and Ticketing Platform
Integrated Promotion and Ticketing Platform Fans Artists Enhanced ticket / purchasing experience Direct-to-fan connection Greater seating and pricing choices Ability to offer fan base more services and products beyond content / performance • All-in ticket opportunities Coordinated global image and p
Slide 8: Significant Opportunities for Growth
Significant Opportunities for Growth Sponsorship Opportunity Online Monetization Opportunity Sponsorship Spending By Segment (US, $B) 23MM+ 58MM+ Other $1.1B registered registered Arts $0.8B Fairs / $6.0B Gross Festivals $0.7B Transaction Music $1.0B Value $161MM / $1B = 16.1% Resale Opportunity Cau
Slide 9: Attractive Combined Financial Profile
Attractive Combined Financial Profile Live Nation’s Strong Growth Engine $4.2 $4.4 $3.7 $2.7 $2.8 $2.9 2003 2004 2005 2006 2007 LTM Q3 CY 08 Ticketmaster Entertainment’s Stable EBITDA Profile $324 $295 $294 $248 $171 $190 2003 2004 2005 2006 2007 LTM Q3 CY 08 Source: 2007 10-K and 2008 Q3 10-Q Note:
Slide 10: Strong Pro Forma Balance Sheet
Strong Pro Forma Balance Sheet ($ in millions) September 30, 2008 Live Nation Ticketmaster Pro Forma Combined Cash & Cash Equivalents $ 206 $ 545 $ 751 Free Cash / Operating Cash 50 188 239 Senior Debt $ 461 $ 565 $ 1,026 Senior Notes 300 300 Convertible Bonds 220 220 Other (Including Capital Leases
Slide 11: Timetable to Close
Timetable to Close Event Expected Timeline Ticketmaster Entertainment lenders Targeting 6-8 weeks consent process Live Nation and Ticketmaster 2-4 months Entertainment shareholder votes Close transaction Anticipate second half of 2009 following regulatory approval 11
Slide 12: Q&A
LYve nation:|ticketmaster Q&A 12
Slide 13: Appendix
LYve nation:|ticketmaster Appendix 13
Slide 14: Live Nation Current Capitalization
Live Nation Current Capitalization ($ in millions) Spread / As of 9/30/08 Maturity Coupon Cash & Cash Equivalents $ 206 Free Cash 50 Revolver¹ $ 40 2012 L + 225 Term Loan² 421 2013 L + 325 Total Bank Debt $ 461 Other (Incl. Capital Leases) 118 Total Senior Debt $ 579 Convertible Sr. Notes 220 2027 2
Slide 15: Ticketmaster Entertainment Current Capitalization
Ticketmaster Entertainment Current Capitalization ($ in millions) Spread / As of 9/30/08 Maturity Coupon Cash & Cash Equivalents $ 545 Operating Cash 188 Revolver¹ 115 2013 L + 225 Term Loan A² 100 2013 L + 275 Term Loan B² 350 2014 L + 325 Total Senior Secured Debt $ 565 Other (Incl. Capital Leases
Slide 16: Non-GAAP Measures
Non-GAAP Measures This presentation contains certain non-GAAP financial measures as defined by SEC Regulation G. A reconciliation of each such measure to its most directly comparable GAAP financial measure, together with an explanation of why management believes that these non-GAAP financial measure
Slide 17: Live Nation Non-GAAP Reconciliation
Live Nation Non-GAAP Reconciliation ($ in millions) LTM 2003 2004 2005 2006 2007 Sep-08 Revenue $ 2,708 $ 2,806 $ 2,937 $ 3,712 $ 4,185 $ 4,425 Operating income $ 108 $ 59 $(13) $ 33 $ 82 $ 198 Depreciation and amortization 64 64 65 128 121 154 Loss (gain) on sale of operating assets (1) 6 5 (11) (5
Slide 18: Ticketmaster Entertainment Non-GAAP Reconciliation
Ticketmaster Entertainment Non-GAAP Reconciliation ($ in millions) LTM 2003 2004 2005 2006 2007 Sep-08 Revenue $ 724 $ 748 $ 929 $ 1,063 $ 1,240 $ 1,422 Net Income $ 82 $ 69 $ 118 $ 177 $ 169 $ 116 Net Interest (income) / expense (1) (7) (17) (34) (32) (1) Equity in income of unconsolidated affiliat
Slide 19: Reconciliation of Non-GAAP Measures to Their Most Directly Comparable GAAP Measures
Reconciliation of Non-GAAP Measures to Their Most Directly Comparable GAAP Measures (Unaudited) ($ in millions) Live Nation Cash and Cash Equivalents $ 206 Deferred Income (222) Accrued Artist Fees (27) Collections on Behalf of Others (83) Prepaids Related to Artist Settlements/Events 176 Free Cash
Slide 20: Forward-Looking Statements
Forward-Looking Statements Certain statements in this presentation may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements include, but are not limited to, statements regarding: the growth of the North Am
Slide 21: Additional Information About the Proposed Transaction
In connection with the proposed transaction, Ticketmaster Entertainment and Live Nation intend to file relevant materials with the SEC, including a joint proxy statement/prospectus. INVESTORS ARE URGED TO READ THESE MATERIALS WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION