Opry Entertainment Group (OEG) has acquired a majority stake in Southern Entertainment, marking its expansion into the festival industry.

Southern Entertainment, co-founded in 2015 by Bob Durkin and Rob Pedlow, is known for promoting several music festivals, including the Carolina Country Music Fest and the upcoming Field & Stream Music Fest.

This acquisition comes at a time when the live events sector is experiencing a robust post-pandemic recovery, positioning OEG to capture market share in the growing festival space.

Both companies aim to leverage this partnership to reach new markets and demographics that were previously inaccessible.

Durkin and Pedlow expressed confidence that the collaboration will enhance their festival offerings and support expansion into new markets.

The festival industry is known for generating strong cash flows through ticket sales and sponsorships, which aligns with Ryman's strategy for revenue diversification.

Investors are likely to find value in Ryman's broader live music ecosystem, which now includes integrated artist development and large-scale event execution opportunities.

Ryman Hospitality Properties plans to report Southern Entertainment's financial results as part of its consolidated Entertainment segment, indicating a significant impact on future earnings.

While the financial terms of the deal have not been disclosed, it allows Southern Entertainment to expand its operations.

This acquisition follows a trend in the music festival industry, which has seen significant activity, including notable acquisitions by KKR and CTS Eventim.

OEG has also made investments in various ventures, including WSM Radio and themed venues like Blake Shelton’s Ole Red and the new Category 10 in Nashville.

The Opry's NextStage Class of 2024 features several artists who have performed at Southern Entertainment festivals, showcasing the interconnectedness of the two companies.