Did you know? The Sphere takes equity in major AV partners

How do you do AV technology procurement at an epic scale? What approach do you take with the world’s largest and most impressive deployments of the technology solutions you have commissioned?

The answer, if you are the Sphere in Las Vegas, is to take equity in two of your major suppliers.

Here’s what this way of developing a world-leading technology installation looks like in practice.

First, the Sphere took a 25% stake in Holoplot. That was before the companies developed Sphere Immersive Sound, “the world’s largest concert-grade audio system”, with around 1,600 permanently installed and 300 mobile Holoplot X1 matrix arrays.

Then, the Sphere took a 30% stake in SACO Technologies. That was before putting in place the venue’s 55,700 sq metre LED Exosphere – the world’s largest LED display – and its 15,000 sq metre wraparound interior LED display – the highest resolution LED display in the world at 16K x 16K.

‘How do we know this?’ you might wonder.

We came across a clue when checking up on reports that the Sphere segment of Sphere Entertainment Co will achieve profitability this quarter. Looking through a 42-page filing with the US Securities and Exchange Commission (the SEC) we found a couple of sentences on page 24 which caught our eye.

“From time to time, we may explore opportunities to purchase or invest in other businesses, venues or assets,” the statement said. “For example, we currently have equity method investments in SACO Technologies Inc and Holoplot.”

And there is more detail about these investments in the company’s annual report filings with the SEC. These say:

• “In fiscal year 2018, the company acquired a 25% interest in Holoplot GmbH, a global leader in 3D audio technology based in Berlin, Germany;” and
• “In fiscal year 2019, the company acquired a 30% interest in SACO Technologies Inc, a global provider of high-performance LED video lighting and media solutions.”

Just looking at the timing of these investments helps us to see how clever they are and how they appear to capture some of the value that comes from being a supplier to an astonishing, world-leading venue.

It turns out the Sphere was announced in February 2018 and a groundbreaking ceremony was held in September 2018. So the equity investments took place just around the time plans for the Sphere went public and construction began. That’s a long way before the venue’s opening, with a U2 residency, in September 2023.

So there you have it. The Sphere is not just an example of an incredible achievement in entertainment technology. It is also a very interesting example of how to do AV technology procurement and partnerships at scale.