AEG Presents, the world's second largest live events company, and Latin entertainment powerhouse Cárdenas Marketing Network (CMN), have partnered in a deal that will bring both companies under one roof. The partnership, in which AEG acquired an undisclosed stake in CMN and in which AEG Presents chairman and CEO Jay Marciano described as a “full collaboration”, it will explosively enhance AEG's Latin music and is AEG's first Latin collaboration of this magnitude.
CMN ended 2023 at No. 4 on Billboard's Top Promoter chart, and in 2022 was at No. 3, a huge achievement for an independent company that CMN founder and CEO Henry Cárdenas describes itself as a “boutique concert promoter”. But it's a very powerful boutique mode, with slate included Bad Bunnystadium tour in 2022 and today Luis Miguel, Mark Anthony and Don Omaramong many others.
In the end, AEG is of course the strong company behind Taylor Swiftworld tour and culturally defining events like Coachella. Latin, however, was not his strong suit, although it promoted him Carol Ghis arena tour in 2023. Now, AEG will have the Latin influence while CMN will have the global reach, and both companies will work together to create elevated and expanded experiences for artists and fans, each benefiting from the complementary strategic alliance.
“We are thrilled to partner with AEG Presents, one of the most powerful global forces in live entertainment. Together we look forward to having an even greater impact on the explosive growth of the Latin market,” Cárdenas said in a statement.
In an exclusive interview with Advertising sign, Cárdenas added: “We wanted to be bigger and more global. AEG is a giant company that also owns venues, and I've known Jay Marciano for 40 years, since he was president of Radio City Music Hall and Madison Square Garden. Jay knows who I am, and I know who he is.”
Marciano added: “Henry is a true entrepreneur and visionary, and what he and his team have created is simply awe-inspiring. We have been trying to expand our presence in Latin music and concerts for some time and it was important that we took the time to find the right partner. we found it in Henry and CMN.”
The partnership between AEG and CMN had been actively in the works for about six months, but had been on the minds of both Cárdenas and Marcianos much earlier.
“I feel like I've been chasing Henry for 40 years,” Marciano says with a laugh. “She's like the girl I've been chasing forever, and she finally said yes […] Henry was in Latin music before any of us knew it was an industry. Timing is everything. And I think the timing for us and for him finally, after all these years, aligned perfectly.”
Cárdenas has been promoting Latin music for 44 years. In 2001, he sold CFA (Cardenas, Fernandez & Associates) — which at one point was the largest Spanish-owned event promoter in the US — to Clear Channel Entertainment and Grupo Televisa. In 2004, he launched CMN on his own and quickly grew it from the ground up, eventually becoming the top Latin promoter in the country. In all its years of operation, he says, it has never lost money, except during the pandemic.
“I'm a boutique concert promoter. I take care of my business. My tours have to be profitable and we take care of every tour,” he says, stressing that his is not a cookie-cutter approach to concert promotion.
However, Cárdenas also wanted to grow and become more global and in 2019, he acquired Arena Bogotá in Colombia. At this point, the merger made sense, especially with a company like AEG, which has assets and artists for Cárdenas to work with in Latin America, and likewise, offers Cárdenas' artists an entry into other markets .
The key, however, was the relationship with Marciano.
“It's about people in this business,” says Marciano. “If you don't have the right people, chances are you won't succeed. With Henry, we knew he had the foundations for decades and could teach us a lot that we were missing.”
Cárdenas and Marciano had initial conversations several years ago, at which point Marciano said, “Henry, I'm not going after you. But when you feel that we are better together than apart, give me a call.”
Last year he did, and discussions began in earnest.
“I think Henry believes that Latin music is not just going to be big in North America, but it has the potential to be big in Europe, Asia and Australia, and he can use our expertise and local offices,” Marciano said. “And we can also use his help because he understands the part of Latin music that we're just getting used to.”
Cárdenas will now take over the Latin AEG activity and tour roster, which includes Carin León. In the spirit of AEG's existing partnerships, such as Messina Group or Golden Voice, Cárdenas will run the business and make decisions about the artists and tours he will bring to the business.
“I told Jay, 'This should be fun. If it's not going to be fun, it's not interesting.' I want to run CMN as I always have,” says Cárdenas.
The AEG-CMN merger follows Live Nation's 2021 acquisition of Mexican concert promoter OCESA Entertenimiento for $416 million for a 51 percent stake in the company.
No amount or stake was disclosed for AEG's purchase of CMN. But, says Marciano, “I think I have the Latino partner I've always wanted.”
from our partners at https://www.billboard.com/business/touring/aeg-presents-cmn-latin-concert-promoter-merger-partnership-1235632092/
