Posted in industry | music on February 10, 2009

Live Nation Ticketmaster

The world's largest concert promoter Live Nation Inc plans to buy Ticketmaster Entertainment Inc for about $400 million in stock in a bid to create a company with dominant holdings in concert promotion and ticket sales.

But shares of both companies fell on Tuesday, amid concerns the acquisition would be blocked by U.S. antitrust regulators under the new Obama administration.

U.S. Senator Charles Schumer slammed the deal ahead of its formal announcement on Tuesday, calling for a federal probe into Ticketmaster, the top U.S. ticket vendor.

"This merger would give a giant, new entity unrivaled power over concert-goers and the prices they pay to see their favorite artists and bands," the Democrat senator from New York said in a statement The combined company will be called Live Nation Entertainment, and sell more than 150 million concert tickets a year, promote 22,000 concerts annually, and own more than 140 venues globally. It will also handle more than 200 big name artists including Madonna, Jay-Z, Miley Cyrus and the Eagles.

Ticketmaster shareholders will receive 1.384 shares of Live Nation common stock for each share of Ticketmaster they own, the two companies said in a joint statement. Live Nation will own 49.99 percent of the combined company, while Ticketmaster will hold the remaining 50.01 percent.

The deal, which the companies called a merger of equals, will create a company with an enterprise value of $2.5 billion including debt.

Live Nation CEO Michael Rapino will run the new company as CEO while Ticketmaster Entertainment CEO Irving Azoff will be executive chairman. Ticketmaster chairman Barry Diller will be non-executive chairman. [REUTERS]

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Comments (26)

great, now there is just one entity to project psychic hate at instead of 2 - they can change the corporate registry but live nation will always be clear channel to me.

Posted by nygrump | February 10, 2009 12:30 PM

gotta love conglomerates!

Posted by Anonymous | February 10, 2009 12:41 PM

How are these douches unable to turn over profits hand over fist? They charge me $25 to print out a pair of tickets from home? How much does that really cost? I know you have massive IT infrastructure, CSRs, etc. But these guys sell millions of tickets a year and the cost to operate can't warrant the excessive fees. Anytime a new player comes along (i.e. Ticketweb) they just get bought out by these guys and jack up the fees again.
I really enjoy how they say they aren't a monopoly because you can go to the venue and buy tickets without service charges. Its not really practical in most circumstances. I can only hope that Chuck actually does something good for once and throws the book at these guys.

Posted by Bob | February 10, 2009 12:42 PM

"I really enjoy how they say they aren't a monopoly because you can go to the venue and buy tickets without service charges. "

Well, they own the venues too, so I'm not really sure how they can say that!

Posted by Anonymous | February 10, 2009 12:51 PM

MASTERNATION!!!

Posted by Anonymous | February 10, 2009 12:53 PM

pretty uncool, when will there be a documentary about the rise and power of clear channel over the music industry?

Posted by Anonymous | February 10, 2009 12:59 PM

Yikes..if anything it would have been better if Ticketmaster bought out Live Nation...Ticketmaster has a way better webpage and can better handle larger onsales.

Posted by Anonymous | February 10, 2009 1:01 PM

U2 ticket sales are going to be shitshows

Posted by Anonymous | February 10, 2009 1:05 PM

fuck u2

Posted by Anonymous | February 10, 2009 1:09 PM

well, negatives aside, I'm hoping this means Live Nation gets back on Ticketmaster's ticketing system ASAP. What a waste of money they probably spent creating that new ticketing system.

Posted by Anonymous | February 10, 2009 1:13 PM

livenation's fees are even higher than TM.

Posted by Anonymous | February 10, 2009 1:23 PM

Anyone going to see U2 deserves what they pay.

Posted by Anonymous | February 10, 2009 1:23 PM

kill the rich. redistribute the wealth. fight the power.

Posted by anarchy rules | February 10, 2009 1:47 PM

Someone just let me know when Blink 182 tickets go on sale. Holla!

Posted by Gwen Stefani | February 10, 2009 1:49 PM

i heard todd p shows are going to be taken over too. market hotel/DBA show tix on sale at ticketnation.com now.

Posted by Anonymous | February 10, 2009 1:52 PM

U2 tickets will be easy - just get them at the Mercury Lounge box office, no service charges!

Posted by Anonymous | February 10, 2009 2:26 PM

now all they need to do is to start making records and they will be a full vertically integrated music company.

Posted by blah | February 10, 2009 3:24 PM

how is this going to affect Bowery Presents relationship with Ticketmaster?

Posted by Anonymous | February 10, 2009 3:53 PM

More importantly, is this going to effect brooklynvegan's commission revenue for all those multiple "tickets on sale" posts and the TicketsNow and Ticketmaster banner ads.

Posted by Anonymous | February 10, 2009 4:12 PM

File your antitrust claim here:
http://www.usdoj.gov/atr/contact/newcase.htm

Posted by Anonymous | February 10, 2009 4:54 PM

bunch of greedy corporate fucks. break their fucking limbs

Posted by Anonymous | February 10, 2009 5:53 PM

I bet they are loving those fat extra service charges...
more than half of the actually ticket sometimes!
stupid bastards.

Posted by Anonymous | February 10, 2009 6:43 PM

i'm also curious about the effect on bowery presents. anyone have info?

Posted by Anonymous | February 10, 2009 6:57 PM

"File your antitrust claim here:
http://www.usdoj.gov/atr/contact/newcase.htm"

Thanks so much for posting this. Seriously, all BV readers and others should fill this antitrust claim-- this monopoly over determining prices and ridiculous charges without any other standard is, in theory, exactly what the laws are in place to stop.

Posted by Anonymous | February 11, 2009 12:43 AM

"pretty uncool, when will there be a documentary about the rise and power of clear channel over the music industry?"

To anon 12:59:

There already is one that came out a couple of years ago, and its mostly about exactly that... its called "Before the Music Dies."


Posted by Anonymous | February 11, 2009 12:48 AM

ull like it.. if u hate ticketmaster :D The Walking Dead - Ticketmaster Apocalypse - http://www.fanarchist.com/blog/the-walking-dead-ticketmaster-apocalypse/

Posted by The Fanarchist | June 14, 2013 5:15 AM

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