Ticketmaster-Live Nation Merger Approved

We've been tracking this story for quite some time. Today, the Department of Justice announced that the merger between Ticketmaster-Live Nation will be approved, forming the new company Live Nation Entertainment. The merger took nearly an entire year due to much investigation and due diligence by the DOJ. Part of the merger stipulation includes the agreement to divest in its Paciolan ticketing operation which was acquired by Ticketmaster in 2007 as well as striking a ticketing licensing agreement with sports and entertainment company AEG. AEG's concert promotion division, AEG Live is currently Live Nation's closest competitor. “Live Nation and Ticketmaster together will be a phenomenal operation that will enhance the ability for artists to perform live, and in this day and age performing live has become extraordinarily important to artists,” Allen Grubman, entertainment attorney for both Ticketmaster and Live Nation stated in an interview. He went on to state that "the merger will “rewrite the way live entertainment has been handled up until now. There will still be plenty of competition, artists will still have the ability to pick and choose who they do business with, but this will give everybody a huge surge.” Finally, Grubman says talk that the merger would lead to higher ticket prices is exaggerated. “Ticket prices are about supply and demand,” he says. “You’re not going to be able to charge unrealistic prices for tickets just because of one new element. If the public is not interested in buying because of high prices, they’re not going to go to concerts.”

From the U.S. Department of Justice:
Under the terms of the proposed final judgment filed today in U.S. District Court for the District of Columbia, the companies have agreed to divest Ticketmaster’s self-ticketing subsidiary, Paciolan, to Comcast-Spectacor and to license the Ticketmaster Host technology to Anschutz Entertainment Group, Inc. (“AEG”), as well as to other terms that protect competitive conditions in ticketing and promotions. Seventeen State Attorneys General also participated in the matter and have joined in the U.S. consent decree. The parties’ consent agreement with the Canadian Commissioner of Competition is on substantially equivalent terms.

As previously announced, in connection with the merger, each issued and outstanding share of Ticketmaster common stock will be cancelled and converted into the right to receive a number of shares of Live Nation common stock such that Ticketmaster stockholders will receive approximately 50.01% of the voting power of the combined company. Subject to final confirmation, the companies expect each share of Ticketmaster common stock to be cancelled and converted into the right to receive 1.474 shares of Live Nation common stock in connection with the merger and for Live Nation to issue approximately 84,613,661 shares of Live Nation common stock to Ticketmaster stockholders in the aggregate.

The combined company will be led by Michael Rapino as CEO and President of Live Nation Entertainment and Irving Azoff as Executive Chairman of Live Nation Entertainment and CEO of Front Line. Barry Diller will serve as Chairman of the Board of Live Nation Entertainment. The Board will consist of 14 directors, seven from each company.

Wednesday Is....No Service Fees Day!

Today Live Nation announced that all tickets purchased will be purchased sans service charges. That's right, it seems Live Nation is giving something back on this very special day, maybe because they charge us up the ass 364 days a year? Either way, by your tickets today while they're still arguably...pretty expensive.

Live Nation & Ticketmaster Merger Confirmed

I reported a few days ago that Live Nation & Ticketmaster were planning a merger. Well now its official, the two companies will combine to create Live Nation Entertainment. Yes, a monopoly will be created on the ticketing industry and yes, anti-trust issues will be raised. Bruce Springsteen has commented on the merger saying "“The one thing that would make the current ticket situation even worse for the fan than it is now would be Ticketmaster and Live Nation coming up with a single system, thereby returning us to a near monopoly situation in music ticketing. If you, like us, oppose that idea, you should make it known to your representatives.” We will have to wait and see what effects this merger will have on the public.

Live Nation & Ticketmaster Expected to Merge

The NY Times reported today that Live Nation and Ticketmaster are expected to merge in the very near future. Although the merger will only lead to $50 million in annual savings, a mere 1% of combined operating costs, the real reason for the merger is likely to eliminate major competition. Live Nation recently opened its own ticketing outlet, posing a serious threat to Ticketmaster. Serious anti-trust issues will likely be raised due to this horizontal ticketing aspect of the merger, something that will be left to the Obama administration to regulate. Furthermore, it will be advantageous for the companies to work together in order to help promote artists and fill venues, if their resource pools are combined. Also, Michael Rapino will act as the President of Live Nation Entertainment, no surprise there.

The problems with this merger are plentiful for the mass public. Ticket prices are already outrageously high. Ticketmaster also owns websites that for all intensive purposes scalp tickets at even higher prices to the public. With 1 major ticketing company potentially emerging, whose to say they won't raise ticket prices even higher! They could combine their "convienence charges" and charge even more than they already do. Hopefully with the lack of major competition, Live Nation Entertainment will lower their ticket prices, now that they will be the one stop shop for all concert tickets.