Some new elephants are emerging from the music business model jungle. Concert promoter Live Nation, fresh off a Madonna acquisition (see earlier blog), has added more merchandising to its growing empire.
Concert giant Live Nation has now acquired merchandising group Signatures Network for $79 million, according to deal points disclosed Thursday. Signatures, a specialist in music-related garb, holds licenses to market and sell merchandise from more than 150 artists. That list includes the Beatles, U2, Bruce Springsteen, Justin Timberlake and the Grateful Dead. And like competitor Zazzle, Signatures also allows customers and clients to create customized clothing.
The acquisition is part of a larger shopping spree by Live Nation, a quickly-growing music empire. Earlier this year, Live Nation completed its ownership of merchandising group Trunk Ltd., also a serious competitor in the space. Both companies play perfectly for Live Nation, which is grabbing “360-degree” real estate across recording, touring, internet, and merchandising properties. “This acquisition is a key component to our strategy to build a unified business around touring artists, managing their rights holistically and helping them reach their true potential,” explained Michael Cohl, chairman and chief executive Officer of Live Nation Artists, a newly-minted division of Live Nation.
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