Live Nation acquires majority stake in Governors Ball
New York’s own Governors Ball has joined Live Nation’s proliferating festival roster, which already consists of leading live music events including Lollapalooza, Electric Daisy Carnival and Bonnaroo.
Late last week, Live Nation officially acquired a majority stake in Founders Entertainment, the producer behind Governors Ball. The deal comes at a precarious time: the homegrown festival now faces serious competition from its west coast competitor, AEG Live – the parent company of Coachella. After many months of speculation in late 2015 concerning the arrival of an “East Coast Coachella,” Founders Entertainment did not take well to the official announcement of the inaugural Panorama Festival, which is slated to take place just a few weeks following Governors Ball.
With the help of live entertainment trailblazer Live Nation, Founders Entertainment now boasts a new tool in their arsenal to properly combat the incoming festival. Tom Russell and Jordan Wolowitz, the producer’s majority partners, felt that Live Nation’s resources would boost their competitive activity and, ultimately, help them expand across the country.
“These events are so high-risk for us that if we were to launch a new event and it were to fail, it would cripple us,” Russell stated. “By partnering up with a company that empowers entrepreneurs,” Founders would “not have the fear that a new venture would really put us in the street.”
Via: NY Times