Saudi Arabia has taken a $500 million stake into Live Nation after the promoter’s shares have plummeted to 50 percent due to the coronavirus pandemic.
According to the New York Post, Live Nation’s shares fell to nearly 50 percent from the all-time highs earned in February. Saudi Arabia’s wealth fund has acquired more than 12.3 million shares equating to about a 5.7-percent stake at the Beverly Hills-based company. Due to the coronavirus, Live Nation has been deeply affected by the pandemic after concerts and other public events have been canceled.
CEO Michael Rapino has forgone his 2020 salary and the company has undergone furloughs, cutting costs, and acquired a $120 million loan to help provide a cash cushion during the pandemic.
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Additionally, Live Nation and its partner, Ticketmaster, was sued last week in a California federal court after refusing to provide full refunds to customers.
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The Post also stated many firms have been skeptical of taking in investments from Saudi Arabia since the murder of journalist Jamal Khashoggi in 2018.