Sphere Entertainment Teams Up with Abu Dhabi for Second Venue

By Tamara Parker • Tuesday, October 15 15:22 • Permanent Link

Sphere Entertainment Co. (NYSE: SPHR) and the Department of Culture and Tourism * Abu Dhabi have announced their collaboration to bring the world’s second Sphere venue to Abu Dhabi, United Arab Emirates. The first Sphere venue opened in Las Vegas in September 2023 and has been widely acclaimed worldwide. The expansion into Abu Dhabi is expected to be a landmark addition to the city's entertainment offerings for both residents and visitors. The venue is expected to have a 20,000-capacity, similar to the Las Vegas location and is anticipated to be a major year-round draw for global audiences.

The partnership involves DCT Abu Dhabi paying Sphere Entertainment a franchise initiation fee for the rights to build the venue, utilizing Sphere Entertainment’s proprietary designs, technology, and intellectual property. The construction will be funded by DCT Abu Dhabi, with Sphere Entertainment’s team of experts providing services related to development, construction, and pre-opening of the venue.

Following the venue’s opening, Sphere Entertainment plans to maintain ongoing arrangements with DCT Abu Dhabi. This is expected to include annual fees for creative and artistic content licensed by Sphere Entertainment, use of Sphere’s brand, patents, proprietary technology, and intellectual property, as well as operational services related to venue operations and technology, and commercial and strategic advisory support.

The partnership aligns with Abu Dhabi's tourism strategy 2030, further establishing the city as a vibrant hub for culture and innovation.

The Department of Culture and Tourism * Abu Dhabi welcomed more than 24 million visitors in 2023, and the addition of the Sphere venue is anticipated to enhance the city's global profile and set new standards in immersive experiences and cultural offerings.

The Sphere Entertainment Co. is a premier live entertainment and media company, and the Department of Culture and Tourism * Abu Dhabi drives the sustainable growth of Abu Dhabi’s culture and tourism sectors and its creative industries. The collaboration between these two entities signifies a significant milestone in the development of the entertainment landscape in Abu Dhabi. Today the company's shares have moved 5.3% to a price of $48.43. For more information, read the company's full 8-K submission here.

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