Nightlife in Las Vegas has just seen the most significant merger in its history as New York City-based Tao Group Hospitality acquired its Las Vegas headquarters. Both companies are two of the biggest players of nightlife and restaurants in Las Vegas and other major cities around the world. Each has a share of the city’s nightlife industry that represents revenues of half a billion dollars or more annually.
Following this merger, the combined number of places operated by the two companies merged is 61 entertainment and nightlife outlets in 22 markets across five continents featuring brands such as Tao, Marquee, Lavo, Beauty & Essex, Avenue, Cathédrale and Koma, as well as Hakkasan and Yauatcha. Omnia, Ling Ling, Jewel, and Casa Calavera, among many others.
The Hakkasan Group Executive Team will continue to manage the day-to-day operations of the Hakkasan properties under Tao Group Hospitality, led by Co-CEOs Noah Tipperberg and Jason Strauss.
Emphasizing the scale of this merger, Group Co-CEO Noah Tepperberg said in his Billboard interview that this merger represents a significant shift in tonight’s life and provides integrated entertainment. Tepperberg also stated that they would provide a platform for leading artists in the industry as these places are the first live music venues in the world. MSG Sphere, upon opening, can move from a capacity of 500 people to a place with 20,000 people. And he added that 16 years ago, when they opened Tao in Las Vegas, they could never have imagined where this would go.
A similar merger took place in 2017 as the Madison Square Garden Company acquired 62.5% of the common stock in the Tao Group, led by founders Mark Packer, Rich Wolf, Noah Tipperberg and Jason Strauss. That deal was worth $ 181 million.
In all its branches, Tao Group is interested in working according to safety and health standards and taking preventive measures related to COVID-19. As indoor dining and other hospitality experiences start to return to regular operations, Tao Group believe their newly combined company will be well-positioned to capitalize on this pent-up demand, paving the way in the long run.
It should be noted that MSG Entertainment holds a controlling stake in Tao Group Hospitality and, as a result, also owns an indirect controlling stake in this merger.
