Cirque de Soleil – Sun is not as Bright Any More

14:14
05 Dec

According to a report from the Wall Street Journal, the sun is not shining as bright any more upon the famous Cirque de Soleil. The owner and the manager of this world-renowned attraction, Guy Laliberte, who also spends a decent amount of time competing in nosebleeds poker games, is looking to restructure his business model.

For thirty odd years, shows put up by the Cirque have grabbed attention in different cities across the globe. Featuring the best of the best in every field, from clowns to acrobats, the business had gotten better and better every year – until recently.

The latest financial reports paint not such a pretty picture. Profits have been declining for different reasons, and it seems that Cirque de Soleil is simply not as attractive as it used to be. The solution to the problem: restructuring the business model.

Guy, et al. are now looking for potential investors who would be willing to buy out a big part of the venture. Laliberte told WSJ that he will try to make something happen before the end of the year, which means very soon.

The story of Guy’s and Cirque’s success is an impressive one and has been told many times. After initial struggles, growing out of the street performer scene in Montreal, Cirque de Soleil came to be known as the biggest circus spectacle of the modern era.

Guy [Laliberté] always said we are a rarity—but the rarity was gone." Marc Gagnon, former top executive;
The shows were gaining more and more popularity in the years that followed until hitting a glass ceiling sometime in 2011. By the end of the year, estimates revelaled that the company needed to approach the introduction of new shows with much more caution and that they should perhaps grow the brand through new products, such as movies.
Despite trying different approaches and implementing cost control, Cirque’s profits continued to plummet. The situation has now reached a critical point where Guy Laliberte is willing to sell 20-30% of the company to outside investors, hoping that new blood will bring some more discipline and fresh ideas into the whole story. One of the things he would like to see happen is expanding to the markets of China and India, places where the show's success has so far been rather limited.
This latest development has initiated some discussion on the 2 + 2 forums as to a possible reason for Guy’s statements earlier in the year about being cheated in the online games. This argument, however, does not really hold much water as the amounts lost or won even at the nosebleeds seem like a drop in the sea compared to the value of Guy’s business ventures, even with these recent difficulties.

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