Dubai buys Cirque stake

DUBAI, United Arab Emirates -- Cirque du Soleil, the dominant entertainment force in Las Vegas, has sold a 20 percent stake in the company to affiliates of Dubai World, the same holding company for the Persian Gulf state that owns a half interest in MGM Mirage's CityCenter.

Nakheel, the government-controlled developer of palm-shaped islands off Dubai's coast, and Istithmar World Capital, a related investment company, did not say how much they paid for their share of the Canadian-based company.

The agreement keeps control of the entertainment company in the hands of founder Guy Laliberte, putting to rest for now speculation that the troupe would be sold outright.

"This partnership is the best of both worlds for me and my management team," Laliberte said in a statement with Nakheel and Istithmar. "We can keep control of our creative challenges and operations while accelerating our growth doing projects all over the world."

Cirque du Soleil President Daniel Lamarre said Wednesday the transaction shouldn't affect the company's Las Vegas operations.

"The real purpose of this deal here is to be able to follow the people from Dubai, who are now influencing a lot of development worldwide," Lamarre said. "To follow them in their developments and accelerate the development of our permanent shows around the world."

"The only potential impact you will see is a positive one," Lamarre added.

The permanent show division is based in Las Vegas, and Cirque has been talking about building a new office complex in the downtown arts district.

Cirque operates five shows on the Strip in partnership with MGM Mirage.

A sixth, "Criss Angel: Believe," is set to begin previews in September.

The Las Vegas shows employ 400 performers and another 400 support personnel. Another 700 stagehands for Cirque shows are on the MGM-Mirage payroll.

In a statement, Istithmar Chief Executive David Jackson said the deal represented the company's first involvement in live entertainment, an area of investment he called "key to our media focus."

The company did not immediately respond to questions about future investment in Cirque du Soleil or other entertainment companies.

Review-Journal writer Mike Weatherford contributed to this report. Contact him at 383-0288 or at mweatherford@reviewjournal.com.