MONTREAL - The founder of the Cirque du Soleil insisted Wednesday that he is still in control of the world-renowned circus troupe after selling one-fifth of the business to two companies owned by the Dubai government.
"The Cirque is not sold and I am still the captain of the boat," Guy Laliberte told reporters during a conference call where he was grilled with questions suggesting the sale was the first step in letting the Montreal-based entertainment giant slip into foreign hands.
A visibly frustrated Laliberte stressed that's not in the cards.
"I don't know why you're thinking I'm selling Cirque du Soleil to the world. I'm not selling Cirque du Soleil. I'm giving up 20 per cent of the company."
There have been rumours of the Cirque being sold outright before. The organization has said it is always being approached by potential suitors but never bitten.
The deal announced Wednesday gives 10 per cent to property developer Nakheel and 10 per cent to the Istithmar World Capital investment company.
Both are part of Dubai World, a diversified holding company owned by the government of Dubai.
"We didn't need to do this partnership," Laliberte said in the call from Tokyo. "We did it for strategic reasons."
The Cirque boss said the organization is in robust financial health and this alliance makes it even stronger, giving it a foothold in another part of the world.
The Cirque is one of the world's largest entertainment businesses, with annual sales of more than US $700 million and almost 10 million visitors per year.
Laliberte said the Cirque decided to partner with the Dubai companies because of positive business relationships in the past.
Dubai World holds a 10 per cent stake in the MGM Mirage hotel in Las Vegas, where the Cirque has a show, and Nakheel and the Cirque announced a 15-year partnership in May 2007 to develop a permanent show on Palm Jumeirah in Dubai.
The Cirque will soon open a show production office, ticket company and equipment and design firm in Dubai.
David Jackson, chief executive of Istithmar, said in a statement that the Cirque deal marks his company's first foray into live entertainment, which he described as "key to our media focus."
"Cirque du Soleil represents the ideal platform for Istithmar World to fuse its strong investment network into a highly focused and dynamic institution, with tremendous scope for growth across markets," he said.
He pointed out that Dubai is a global tourist hub and one of the fastest-growing entertainment and media markets in the world, representing a huge opportunity for the Cirque.
Laliberte said he has always believed global expansion was key to the success of the Cirque, which was founded 24 years ago in Montreal.
But some reporters questioned whether the Dubai deal would put the Cirque in the same position as such companies as Alcan and Molson, which were taken over by foreign interests.
"I would not do a transaction like that if I did not believe it will have a beneficial result for the community that I have been living in," Laliberte said, adding he doesn't have a problem with foreign investment if it creates jobs and opportunities for more projects.
The Dubai investors will not have any artistic input into the Cirque.
The Cirque is currently producing 18 shows around the world for this year, including new permanently based shows in Macau, Tokyo and Las Vegas.
