Music
11 Feb 09

Live Nation Merger With Ticketmaster Confirmed In The US

Plans to merge Live Nation and Ticketmaster have been confirmed in the US, with an announcement to the New York Stock Exchange.

However the deal, which is one of the biggest in music industry history, will have to be passed by anti-trust regulators, with the approval of the Department of Justice or the Federal Trade Commisssion required before it will go ahead.

While it is not clear from the information available to date, it seems certain that the merger would extend to European markets, as it has been described as an ‘all-stock transaction’ in reports from the Stock Exchange. The European aspects of the merger are also certain to come under the scrutiny of the relative competition authorities.

The deal, news of which was announced by hotpress.com last week, has already been criticised by a number of US Senators. Meanwhile, Bruce Springsteen has also expresssed concern about the effect, suggesting that fans might face higher ticket prices, after a ticketing problem had arisen in relation to one of his shows.

According to a report in the New York Times, fans seeking to buy tickets for a Bruce Springsteen show on Ticketmaster’s web site encountered technical difficulties and were directed to a site called TicketsNow.com, also owned by Ticketmaster, that apparently offered tickets at marked-up prices.

Charles E.Schumer the Democrat senator for New York, has issued a statement criticising the merger. “It would give a giant new entity unrivaled power over concertgoers and the prices they pay to see their favorite artists and bands,” he said. “It must be viewed skeptically and scrutinized with a fine-toothed comb by the Justice Department and the Federal Trade Commission.”

However, Live Nation Chairman Barry Diller, quoted in the NY Times, insisted that neither Live Nation nor Ticketmaster sets prices. “Artists set prices,” he said.

Under the terms of the deal a new entity will be created called Live Nation Entertainment, which will be owned about equally by the current corporate entities, Ticketmaster and Live Nation. The transaction will not close till later in 2009, pending the approval of the relevant authorities.