Cirque du Soleil and the One Drop founder, Guy Laliberte, is looking to sell 20-30% of his entertainment company, in a bid to breathe new life into limp balance sheets.
The first Cirque du Soleil show I watched was Ka at the MGM Grand. It’s one of my fondest memories. It was the first date I had with my wife. After the show I was a big fan. Each year, when I returned to Las Vegas, I would make sure that I put some money aside to have my Cirque fix.
Over the years I have seen O at The Bellagio, Beatles LOVE at The Mirage, and Michael Jackson “ONE” at Mandalay Bay. With the exception of Michael Jackson “ONE” – the greatest show I have ever watched – there was too much sameness with Love, O and Ka. Too many people jumping around to a beat I didn’t understand. Beatles LOVE was particularly disappointing given the great songs that they had to play with (a mistake they did not make with ONE).
I have had my Cirque fix. I won’t be going back – with the exception of another look at ONE – and I wonder how many people share my view? Following the Cirque balance sheets will bring you to the conclusion that’s is more than they would care to have.
That’s a shame.
As soon as Guy Laliberte created the BIG ONE for ONE DROP he became one of us. Once a visionary, always a visionary. From the innovative dance moves, to the first million dollar buy-in event that poker had ever seen. Cut him open and red noses, chips and cash will spill onto the floor.
The Wall Street Journal’s, Alexandra Berzon, has broken a story detailing the struggles that Cirque du Soleil is experiencing as a viable business. According to the article, in 2008, Laliberte agreed to sell 20% to a Dubai government-owned real estate company for $545m, with $275m heading to his personal bank account. Five years later he would bough a chunk of that back, but by this time his business had declined by 20% from a $2.7 billion business, to one worth $2.2 billion.
The article suggests that Laliberte is back in the market for a buyer. Just like 2008 he is looking to sell between 20-30% of his company to outside investors. It’s envisaged that a savvier strategic partner will help the brand expand beyond the great work it has done in Las Vegas.
I hope it works out.
I really do.
The Cirque du Soleil brand was synonymous with poker way before the One Drop was devised, and even more so since. How many of us use a Cirque du Soleil show as a way to unwind in between the huff and puff of the World Series of Poker?
Long may it continue.
SOURCE: Calvinayre