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Saudi Arabia’s Public Investment Fund (PIF) has purchased a 5.7% share in global promoters Live Nation.

The PIF is among the largest sovereign wealth funds in the world, with assets estimated at USD$320bn, and operates on behalf of the Saudi Arabian government.

The fund purchased 12,337,569 shares on 16 April 2020, when they were valued at $36.40. The total cost of the purchase comes in at just under USD$450m.

Just two weeks before the share purchase, Live Nation announced it would be cutting its annual costs by $500m in an attempt to weather the financial storm of Covid-19.

According to
reports, the company said it would be making cuts in “hiring freezes, reduction in the use of contractors, rent re-negotiations, furloughs and reduction or elimination of other discretionary spending including, among other things, travel and entertainment, repairs and maintenance, and marketing”.

Live Nation’s stock valuation decreased heavily at the start of April, dropping from just under $45 to $35 as lockdown measures were put in place around the world. Since then prices have increased slightly, but PIF still purchased the shares at a reduced price than usual.

The share purchase suggests Saudi Arabia’s government sees the live industry as one to invest in, as it looks to diversify its economy away from oil. Oil prices have tumbled in recent weeks as demand for travel has massively decreased.