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"Ticketmaster & Live Nation Head for Divorce"

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On Thursday, it was widely reported that Ticketmaster is ready to end its relationship with Live Nation after protracted contract negotiations broke down. The demise of the union between the country’s biggest ticket retailer and the biggest concert promoter will inevitably shake-up the U.S. ticket sales industry.

According to a report by the Wall Street Journal, an internal memo released by Ticketmaster said the company did not expect to renew its contract with Live Nation. “We are now conducting our business with the clear understanding that our partnership with Live Nation is more than likely coming to an end,” Chief Executive Officer Sean Moriarty and Chairman Tom McInerney said in a Wednesday e-mail.

The clear loser in this case is Ticketmaster, which depends on Live Nation for roughly 20% of its sales. In 2006, the online ticket store raked in $1.1 billion, about $200 million of which was generated by Live Nation tickets. In turn, it’s a major hit for Ticketmaster’s parent company, IAC/InterActiveCorp, which relies on Ticketmaster for 19% of its sales. [Forbes]

Previously
* Live Nation vs. Ticketmaster (on cutting prices)
* Live Nation buying majority stake in MusicToday