UMG, LIVE NATION JOIN FORCES

Live Nation Entertainment and Universal Music Group are now bedfellows.

The two companies announced the formation of a broad-based strategic partnership. And no, that doesn't mean Lucian Grainge now joins Irving Azoff's fantasy Wall Street league. The two will roll together a 50/50 joint venture involving UMG's wholly owned management companies as well as a worldwide bundling initiative involving Ticketmaster.

Live Nation Entertainment’s Front Line Management Group division and UMG will look to manage and strengthen artists and their brands through a variety of worldwide sponsorships, strategic marketing campaigns and brand extension opportunities. The partnership will be managed by Front Line and will focus on developing direct-to-consumer bundling initiatives for select UMG artists in key markets around the world that bring together concert tickets and a variety of music products with artist websites. The ticketing and bundling products will be handled by Ticketmaster.

Commented Live Nation Executive Chairman and Front Line Chairman/CEO Azoff: “This is an unprecedented partnership that unites the world’s top music artists with the world’s leading artist management, live entertainment, event ticketing and sponsorship resources to drive innovation across our industry. We see tremendous opportunities to work together to create a broad range of products built on the power of music and the direct connection between artists and fans. We look forward to working closely with Lucian Grainge and the talented UMG team in this new and exciting chapter of the music industry. Hopefully, it won't hurt my golf game.”

“We are thrilled with the opportunity to partner with Universal Music Group’s incredible roster of global superstars and emerging artists,” said Live Nation President/CEO Michael Rapino. “Ticketmaster’s digital distribution platforms will further support artist development by reaching millions of fans worldwide. And no, I can't get you a pair for Radiohead at Roseland.”

Added UMG Chairman/CEO Grainge: “Together with Irving and Michael, we are creating a series of new platforms and global direct-to-consumer initiatives that will further expand the presence of our artists in this evolving marketplace while providing music fans with even more flexibility in how they consume music. Our artists and their music are at the heart of everything that we do, and by leveraging our combined skills, strengths and global reach with that of Live Nation Entertainment, our management companies, artists and their fans will benefit immeasurably. At least that's what Irving tells me.”

UMG’s artist management companies include Trinifold, Twenty First Artists (TFA), 5B and Sanctuary. While each of UMG’s divisions will remain independently run under their current management, which includes prominent managers Carl Stubner (Sanctuary), Bill Curbishley and Robert Rosenberg (Trinifold), Cory Brennan and Bob Johnsen (5B) and Colin Lester (Twenty First Artists), they will work closely with Front Line to expand their respective rosters of artists and managers.