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Seagram sells music unit
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July 26, 1999: 12:13 p.m. ET
House of Blues pays $190M for Universal Music Group's concert unit
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NEW YORK (CNNfn) - Seagram Co. Ltd.'s Universal Music Group unit has sold its concert venue operator, Universal Concerts, to Los Angeles-based House of Blues Entertainment Inc. for $190 million, including debt.
Under the agreement, UMG will receive warrants to purchase up to 1 percent of privately-owned HOB, and also will enter a strategic alliance with the live entertainment provider.
The deal covers UMG's 20 concert venues across the United States and Canada. But it excludes ownership of Seagram's Universal Amphitheatre on the lot of Universal Studios Hollywood. Instead, HOB will operate the venue on a long-term lease.
Part of the agreement will give GetMusic.com, UMG's online music joint venture with Germany's Bertelsmann's music unit BMG, exclusive rights as the e-commerce provider of HOB's on-line activities.
HOB currently operates seven live music venues across the United States, under the House of Blues name. It also distributes live music via the Internet and operates HOB Digital, a producer, promoter and distributor of live music content.
"We've created a powerhouse of a company through this acquisition. HOB is the only live entertainment company that can offer the artists exposure from the small club level through to an amphitheatre, partnered with live digital broadcasts over the Internet," said Greg Trojan, president and chief executive officer of HOB Entertainment. 
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Seagram
HOB Digital
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