NBCUniversal And Investment Partner Pay $293M For 30% Stake In Grand Ole Opry And Related Country Music Properties
05.04.2022 - 02:43
/ deadline.com
NBCUniversal and investment partner Atairos have paid $293 million for a 30% stake in fabled country music brand the Grand Ole Opry and a cluster of related Nashvlle-based live entertainment and assets.
The Opry’s home, Ryman Auditorium, is known for hosting the Country Music Awards. It is a cornerstone of Opry Entertainment Group, the division of Ryman Hospitality Properties receiving the investment from NBCU. Along with the Ryman and the Opry itself, a nearly centuty-old country music showcase, properties include a smaller collection of music venues called Ole Red, radio station WSM-AM and a 50% interest in country lifestyle media network Circle. The network is a joint venture with Gray Television, a major station group owner. The weekly “Grand Ole Opry” stage show streams on Circle.
Atairos is shouldering almost the entire cost of acquiring the stake, putting in $278 million, compared with a direct investment of $15 million by NBCU. The transaction, which is expected to close during the current quarter, values Opry Entertainment at $1.415 billion. That amount will rise to $1.515 billion, according to the deal terms, once an additional $30 million is kicked in by Atairos, contingent on certain performance targets being hit. OEG will also be recapitalized via a $300 million term loan, on top of the 30% stake sale.
“Over the last decade we have shared our excitement about the bright future of our entertainment business and the significant value creation opportunities that exist as we extend our reach nationwide and transition OEG to an integrated country lifestyle platform,” Ryman Hospitality CEO Colin Reed said in the deal announcement.
After receiving unsolicited interest in June 2021, Ryman began a formal strategic
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