RedBall Acquisition Corp. and SeatGeek are confident that live events will return to pre-Covid levels. The two companies, which announced a merger earlier this week, are on to something.
“While live entertainment was obviously severely impacted by Covid, we’ve already seen stadiums return to full capacity, and major music tours moving from arena to arena,” said SeatGeek CEO Jack Groetzinger during a recent conference call that discussed the merger. “The rebound has been quick and it has been powerful. And given the pent-up supply and demand, we expect strong industry-wide market growth for the next few years.”
SeatGeek is a technology-focused platform that allows people to buy and sell tickets for live sports, concerts and theater events. RedBall is a SPAC that is sponsored by an affiliate of RedBird Capital Partners. Kevin Durant of the NBA’s Brooklyn Nets is also backing SeatGeek’s merger with RedBall.
Quarantine didn’t stop private equity firms from investing in live events either, as they took a long-term approach with in-person entertainment coming back. ZMC invested in The Second City’s live comedy and RedBird invested in Fenway Sports Group.
I suspect deals in this space will rebound. Are you a PE investor looking for live event deals? I would love to hear what your approach is. E-mail me at: [email protected].
– Demitri Diakantonis