Los Angeles billionaire Patrick Soon-Shiong is to bid for AEG having joined forces with financial services firm Guggenheim Partners.
AEG was put up for sale by parent company The Anschutz Company last week with a reported price tag of $7 billion put on the company.
AEG covers assets including over 100 venues (including The O2 Arena in London) across the globe, AEG Live concert promotions division (which counts Coachella amongst its works) and sports franchises.
Soon-Shiong has a fortune estimated at more than $7.2 billion, according to Reuters, although he is expected to bring additional partners into the group.
Guggenheim recently led a local consortium in the purchase of the Los Angeles Dodgers baseball team.
As well as The O2 Arena, AEG's assets include the Los Angeles Kings professional hockey team, the Staples Center in Los Angeles.