“We continue to expand the industry’s most unparalleled and scalable festival platform, all while driving strong revenue and growth for Live Nation on a global basis,” Michael Rapino, Live Nation’s chief executive, said in a statement. “Bonnaroo is another crown jewel in this festival channel strategy.”

Neither the price of the transaction, nor the size of Live Nation’s stake in Bonnaroo, was disclosed.

Once a marginal part of the music scene in North America, festivals now play an increasingly central role in the business. The biggest events, like Coachella and Electric Daisy Carnival, have built powerful identities, luring huge crowds as well as sponsorship dollars. And for the promoters who not only sell tickets but also control a range of other sales, like food and V.I.P. packages that can include amenities such as special viewing areas and luxury tents, they can be highly profitable.

“Festivals are the one area of the business where there is consistent growth,” said Steve Martin, a longtime talent agent now with the APA agency in New York. “Profit margins on a good festival are vastly better than a regular night at Jones Beach.”