Concert promoter Denis Desmond is in talks to sell a majority stake in his Irish company, MCD, to US entertainment giant Live Nation, his partner in their British music business, writes Simon Carswell, Finance Correspondent
MCD is Ireland's biggest music promoter and organises the annual Oxegen festival, one of its most profitable events. It organised Barbra Streisand's Irish concert in July.
Mr Desmond's firm already works closely with Live Nation and its subsidiary touring companies, organising some of its major outdoor Irish tour dates such as the Rolling Stones concert at Slane Castle in August.
Live Nation (formerly Clear Channel) has been interested in buying a majority stake in MCD for several years, but its overtures have been consistently rebuffed by Mr Desmond. However, both sides are now in talks with a view to Live Nation taking a stake in MCD. An agreed timetable for talks has been scheduled, but it is expected to be several months before any deal is concluded. Talks have not yet reached a stage where a price has been discussed.
Mr Desmond and his wife Caroline own a number of Dublin venues, including the Gaiety and Olympia, through a separate company, Gaiety Investments, but the venues are unlikely to be included in any deal reached with Live Nation.
The US company, which is listed on the New York Stock Exchange, has a policy of taking only majority stakes in joint venture companies around the world. It has been expanding its business in recent years by joining forces with local promoters rather than buying them outright. A joint venture with MCD would give it an even stronger foothold in the Irish live music market. Property developer Harry Crosbie has agreed to hand over the management of his four Dublin entertainment venues, including the Point, to Live Nation when they are open.
Live Nation owns a 51 per cent stake in the Mean Fiddler/ Academy Music, the British businesses behind some of the best-known music festival and venues in Britain. MCD holds the remaining shares.
Speaking through a Live Nation spokeswoman, its UK president, Paul Latham, said: "Live Nation have been Denis's partner in Mean Fiddler/ Academy Music Group for some years and we are constantly talking to him in the course of our day to day business." Calls to Mr Desmond and a spokesman for MCD were not returned.
