House of Blues will buy concert business

David Germain

Tuesday, July 27, 1999 | 11:46 a.m.

LOS ANGELES -- House of Blues Entertainment said Monday it is buying Universal's live-music unit for $190 million, acquiring a promotion business that includes 20 concert sites.

The move is part of a selloff of some assets by Universal Concerts owner Seagram Co., which is trying to raise cash and reduce debt after its $10 billion purchase of PolyGram music. The companies said the sale should close by the end of September.

The deal will nearly quadruple the number of concert venues for House of Blues. The Los Angeles-based company now has seven House of Blues sites around the country, including one at the Mandalay Bay hotel-casino in Las Vegas.

Universal owns, operates or has exclusive booking arrangements for 20 concert sites in the United States and Canada, including Molson Park in Toronto, the Blossom Music Center in Cleveland and the Gorge near Seattle. The deal includes Universal's interests in 19 of those venues. Seagram will retain ownership of the Universal Amphitheatre on the lot of Universal Studios Hollywood and lease the concert site to House of Blues.

Operating those venues will broaden concert-promotion options for House of Blues, whose show sites now are clubs that hold about 1,000 to 2,000 people, said Greg Trojan, House of Blues president and chief executive officer. Universal's venues include many larger sites.

"We can go to artists and labels and say, 'We can put you on tour in this wonderful group of venues and media properties under our great House brand name,' " Trojan said.

The deal also gives Universal the option to buy up to 1 percent of privately owned House of Blues. GetMusic.com, operated by Universal and BMG, also will have an online partnership with House of Blues Web efforts.

"It's good for us not only because of the cash but because of this relationship we'll have with House of Blues," said Seagram spokeswoman Anita Larsen.

Universal Concerts is a profitable business but it was among the units Seagram identified as potential sale candidates after the PolyGram deal last year, she said.

Jay Marciano, president of Universal Concerts, and other management and employees will stay on to run the business for House of Blues.