Live Nation Builds Empire with Austin City Limits Firm

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Live Nation on Friday expanded its empire of global music festivals by acquiring C3 Presents, which runs the acclaimed Austin City Limits and Lollapalooza.

The two companies said that Live Nation Entertainment would take a controlling stake in C3 Presents, subject to regulatory approval. Financial terms were not disclosed.

Live Nation Entertainment, based in the Los Angeles area, is the global leader in concert promotion, operating nearly 150 venues around the world as well as sales giant Ticketmaster.

The company already runs more than 60 annual music events including, through its London-based subsidiary Festival Republic, the giant Reading and Leeds Festivals.

C3's Austin-based executives said in a joint statement that they were "excited to join Live Nation" but would still manage and develop their own festivals "within a culture of entrepreneurship."

The Austin City Limits Music Festival -- inspired by the U.S. public television series of the same name that draws top talent -- has quickly developed since its launch in 2002 and brings tens of thousands of fans to the Texas capital known for its live scene.

C3 Presents in 2005 relaunched Lollapalooza -- initially a traveling alternative rock and cultural extravaganza led by the band Jane's Addiction -- and turned it into a major annual event in Chicago.

The deal comes as festivals quickly increase in importance for the  music industry, with the number of events rapidly growing and becoming vital to the careers and finances of many bands.

Lollapalooza -- which also has editions in Brazil, Chile and Argentina -- next year will expand to Europe with an edition in Berlin. Friday's deal will likely make that process smoother as Live Nation, through Festival Republic, already operates the German capital's existing Berlin Festival.

Live Nation is also involved in electronic music through a deal with Insomniac Events and in country music through Country Nation.