UPDATED: Concert Giant Live Nation Buys House Of Blues For $350 Million

UPDATED: Concert giant Live Nation is buying House of Blues Concerts and its venues for $350 million in cash.  Live Nation said the acquisition will expand its reach in the growing mid-size venue business and fill geographic gaps in its amphitheater portfolio.

The publicly traded Live Nations says that the deal which should close by the end of 2006 will to boost earnings within  the first year. Shares of Live Nation were down almost 10% in after hours trading on Wednesday.

According to figures from industry trade magazine Pollstar Live Nation sold 29.6 million event tickets last year with House of Blues moving 6.9 million and AEG Live 6.3 million.

AEG Live’s head Randy Phillips told the LA Times that "Live Nation will force artists into exclusive deals that will steal musicians abilities to direct their own careers. This marks the end of all of the small independent promoters who have been the entrepreneurs of this industry." But others disagree including Jim Guerinot manager of Gwen Stefani and Nine Inch Nails. "There will always be plenty of independent clubs for bands to play. This doesn’t give promoters any more power over us."

COMMENTARY: No details were given about lay-offs which will inevitably follow the purchase.  In many markets Live Nation and House Of Blues go head to head competing for acts and ticket sales.  This has lead to an animosity between at least some employees of both companies that will be difficult to overcome as they try to meld two distinctly different corporate cultures. 

It is generally expected that staffing at the HOB nightclubs will remain much the same. But the future is less certain for the teams at the two competing concert divisions. Live Nation is the one doing the buying and the much larger of the two companies. So any questions about what staff members will still be employed a year from now and what business style will prevail may already be answered.

AEG remains the only other major national promoter still standing. But just as record label consolidation has opened many doors for indie record companies; so may the Live Nation/HOB combination provide opportunities for a growing cadre of independent concert promoters.

Read the full Live Nation press release here.

Insider reaction @ The Velvet Rope.