Los Angeles Music Scene: Live Nation Acquires Majority Stake in Livestream Platform Veeps

Just a couple weeks ago I reported on the fact that Live Nation borrowed $500 million dollars. Of this amount, $75 million was going to pay down debt, leaving them with $425 million for general corporate purposes, which included acquisitions. 

Variety (Jan 19) reports on how some of that $425 million (likely) is being spent:

Live Nation, the world’s largest live-entertainment company, has acquired a majority stake in Veeps, the ticketed livestream platform launched by Joel and Benji Madden of the band Good Charlotte. 

Information on how much Live Nation invested to get this majority stake was not disclosed. Perhaps the amount will be discussed in the Q4 earnings call, which should occur in early February. If not, an approximate estimate can probably get derived when their Q1 earnings come out in early May via their cash flow statement.

Is livestreaming really a long term winner? Admittedly, I've watched a lot of livestreams since March 2020 and I've seen some movie quality concerts in my time, but there really isn't anything like a going to an actual concert. When this pandemic is over, are people going to be satisfied just watching from their couch? I guess we'll find out.

The article closes out with this hint about when we can expect the return of live music.

The move is a logical one for Live Nation: While infectious-disease expert Dr. Anthony Fauci has said that mass gatherings like concerts may return by the autumn “if everything goes right” — a big if, considering the United States government’s weak response to the pandemic — the process will inevitably be gradual, and it may be some time before people feel comfortable gathering in enclosed spaces with fellow humans.

I've recently thought that live music would return to Los Angeles around September, which would be late summer / early autumn (I call it fall, but whatever). It is important to note that Live Nation during their Q3 earnings call in November was targeting summer for the return of live music. It'll be interesting to see if they shift their schedule. I will admit that I am pushing back my September estimate based on the following LA Times (Jan 21) article: 

Vaccinating Californians 65 and over could take until June to complete, the state’s epidemiologist said Wednesday, raising new concerns about when other groups will be eligible for the vaccine and underscoring the rapidly dwindling COVID-19 vaccine stockpiles.

That timetable would push back vaccine access for people not currently on the priority list for at least four months, based on state epidemiologist Dr. Erica Pan’s estimate at a vaccine advisory committee meeting. The current priority list, in addition to older residents, includes healthcare industry workers and employees and residents of nursing homes.

It was my understanding that vaccinations would be widely available for everyone come April. That might be true for other states, but doesn't appear to be true for California. Of course, California might be messaging a pessimistic forecast to their timeline for a variety of reasons -- such as trying to get more federal funding. If it takes until sometime in June to vaccinate everyone over the age of 65, I'm not sure (even considering how vaccinations are surely in a ramp up stage) how you'd be able to vaccinate the majority of people between the ages of 18 to 64 by September (technically, the first of two doses would need to occur by August). So perhaps my target date for the reopening of our local music venues should be pushed a couple months to November.