Ticketmaster/Live Nation Merger Approved
we're fucked
WASHINGTON/NEW YORK, Jan 25 (Reuters) - Ticketmaster Entertainment (TKTM.O) and Live Nation (LYV.N) won U.S. antitrust clearance to merge after agreeing to divest certain assets, sending the shares of both companies sharply higher.
The U.S. Justice Department said on Monday it was requiring Ticketmaster to license its primary ticketing software to a competitor, sell off one ticketing unit, and agree to terms that bar it from retaliating against venue owners who decide to use a competing ticket service.
The deal is expected to close in a few days to create a new company called Live Nation Entertainment which would own more than 140 concert venues globally, sell around 140 million tickets a year and promote 22,000 concerts annually.
The combination of ticketing giant Ticketmaster with the world's largest concert promoter, Live Nation, had attracted criticism from artists, fans and some lawmakers, concerned the new company could dictate terms for major events.
"I was prepared to litigate at any and all points, until a settlement was achieved that efficiently dealt with all our anti-competitive concerns," Christine Varney, head of the Justice Department's Antitrust Division, told reporters.
Investors welcomed the decision, sending shares of Live Nation up 14.7 percent to close at $10.51 on the New York Stock Exchange. Ticketmaster shares rose 15.8 percent to finish at 15.40 in regular trading on Nasdaq.
At those prices the all-stock deal would be worth $835 million.
"The conditions seem to be relatively benign," said Tuna Amobi, equity analyst at Standard & Poor's. "There are no major divestitures required. I don't know that is going to create the kind of even competitive field that was intended."
Although relatively small combination in U.S. business terms, some had come to view it as a test case for the Obama administration's pledge to get tough on mergers.
"I will be keeping a very close eye on this settlement as we go forward," Varney said. "You can probably expect to see three competitors and generally when you see robust competition you see prices coming down."
Varney said that she expected to see ticket price decline as a result of the settlement. The agreement will last for ten years. Seventeen states joined in the settlement and Canada has a parallel pact imposing similar conditions on the deal.
LICENSE SOFTWARE, SELL UNIT
Ticketmaster will be required to license its primary ticketing software to Anschutz Entertainment Group (AEG), the second-largest concert promoter and operator of major venues. Within five years, AEG can either buy the software, create its own or partner with another competitor.
Additionally, Ticketmaster will also have to sell its Paciolan Inc ticketing unit. It already has a letter of intent from Comcast Corp's (CMCSA.O) Comcast Spectacor, a sports and entertainment company.
Paciolan could be sold to another buyer the Justice Department finds suitable, the agency said.
Live Nation Chief Executive Michael Rapino said in a statement that the companies are "close to finalizing" the creation of the new company.
Ticketmaster also owns Front Line Management, the leading artist management firm founded by Ticketmaster Chief Executive Officer Irving Azoff. Its roster of 200-plus artists includes The Eagles and Miley Cyrus.
Live Nation owns major venues like the Gibson Amphitheatre in Los Angeles and the House of Blues chain, and has long-term contracts with top artists like Madonna, U2, Jay-Z and Nickelback.
Under the merger terms, Ticketmaster shareholders would receive 1.384 shares of Live Nation common stock for each share of Ticketmaster. Live Nation would own 49.99 percent of the combined company, while Ticketmaster would hold the remaining 50.01 percent.
http://www.reuters.com/article/idUSN2513450520100125
WASHINGTON/NEW YORK, Jan 25 (Reuters) - Ticketmaster Entertainment (TKTM.O) and Live Nation (LYV.N) won U.S. antitrust clearance to merge after agreeing to divest certain assets, sending the shares of both companies sharply higher.
The U.S. Justice Department said on Monday it was requiring Ticketmaster to license its primary ticketing software to a competitor, sell off one ticketing unit, and agree to terms that bar it from retaliating against venue owners who decide to use a competing ticket service.
The deal is expected to close in a few days to create a new company called Live Nation Entertainment which would own more than 140 concert venues globally, sell around 140 million tickets a year and promote 22,000 concerts annually.
The combination of ticketing giant Ticketmaster with the world's largest concert promoter, Live Nation, had attracted criticism from artists, fans and some lawmakers, concerned the new company could dictate terms for major events.
"I was prepared to litigate at any and all points, until a settlement was achieved that efficiently dealt with all our anti-competitive concerns," Christine Varney, head of the Justice Department's Antitrust Division, told reporters.
Investors welcomed the decision, sending shares of Live Nation up 14.7 percent to close at $10.51 on the New York Stock Exchange. Ticketmaster shares rose 15.8 percent to finish at 15.40 in regular trading on Nasdaq.
At those prices the all-stock deal would be worth $835 million.
"The conditions seem to be relatively benign," said Tuna Amobi, equity analyst at Standard & Poor's. "There are no major divestitures required. I don't know that is going to create the kind of even competitive field that was intended."
Although relatively small combination in U.S. business terms, some had come to view it as a test case for the Obama administration's pledge to get tough on mergers.
"I will be keeping a very close eye on this settlement as we go forward," Varney said. "You can probably expect to see three competitors and generally when you see robust competition you see prices coming down."
Varney said that she expected to see ticket price decline as a result of the settlement. The agreement will last for ten years. Seventeen states joined in the settlement and Canada has a parallel pact imposing similar conditions on the deal.
LICENSE SOFTWARE, SELL UNIT
Ticketmaster will be required to license its primary ticketing software to Anschutz Entertainment Group (AEG), the second-largest concert promoter and operator of major venues. Within five years, AEG can either buy the software, create its own or partner with another competitor.
Additionally, Ticketmaster will also have to sell its Paciolan Inc ticketing unit. It already has a letter of intent from Comcast Corp's (CMCSA.O) Comcast Spectacor, a sports and entertainment company.
Paciolan could be sold to another buyer the Justice Department finds suitable, the agency said.
Live Nation Chief Executive Michael Rapino said in a statement that the companies are "close to finalizing" the creation of the new company.
Ticketmaster also owns Front Line Management, the leading artist management firm founded by Ticketmaster Chief Executive Officer Irving Azoff. Its roster of 200-plus artists includes The Eagles and Miley Cyrus.
Live Nation owns major venues like the Gibson Amphitheatre in Los Angeles and the House of Blues chain, and has long-term contracts with top artists like Madonna, U2, Jay-Z and Nickelback.
Under the merger terms, Ticketmaster shareholders would receive 1.384 shares of Live Nation common stock for each share of Ticketmaster. Live Nation would own 49.99 percent of the combined company, while Ticketmaster would hold the remaining 50.01 percent.
http://www.reuters.com/article/idUSN2513450520100125
Post edited by Unknown User on
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Comments
...the fans will get KCUF'd, and they will be rolling in the money.
Too bad they consider such monopolies to exist... and it only helped that Live Nation's board member Ariel Emanuel and Obama's Chief Of Staff Rahm Emanuel are brothers.
*NYC 9/28/96 *NYC 9/29/96 *NJ 9/8/98 (front row "may i play drums with you")
*MSG 9/10/98 (backstage) *MSG 9/11/98 (backstage)
*Jones Beach 8/23/00 *Jones Beach 8/24/00 *Jones Beach 8/25/00
*Mansfield 8/29/00 *Mansfield 8/30/00 *Nassau 4/30/03 *Nissan VA 7/1/03
*Borgata 10/1/05 *Camden 5/27/06 *Camden 5/28/06 *DC 5/30/06
*VA Beach 6/17/08 *DC 6/22/08 *MSG 6/24/08 (backstage) *MSG 6/25/08
*EV DC 8/17/08 *EV Baltimore 6/15/09 *Philly 10/31/09
*Bristow VA 5/13/10 *MSG 5/20/10 *MSG 5/21/10
"Becoming a Bruce fan is like hitting puberty as a musical fan. It's inevitable." - dcfaithful
Not necessarily...Mergers are supposed to create 'synergistic value', meaning that by combining forces and increasing the size (scale) of the company, cost savings can be achieved and can then be passed on to consumers. Let's hope that's the case for this one.
check out this 2008 article on point. doubtful that prices will decrease, rather most likely, they will rise. exactly the opposite effect preached by the proponents of the merger.
http://www.voxeu.org/index.php?q=node/1074
AHAAHHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHA
I can think of absolutly no benefit from this
ugh
EV Arlene Schnitzer Hall - July 14 2011, EV Benaroya Hall - July 16 2011
stockholders
I think they charge a fee for that. A couple bucks at least.
great point, shared resources result in cost savings, which theoretically could be passed on to customers; however, given the monopolistic nature of this merger, i would speculate that the probability of this is somewhere between unlikely and highly unlikely
Exactly, the stock prices shooting up tells you everything you need to know. Merger will be good for the company, bad for the fans.
I just read this quote on Billboardbiz.com from the Ticketmaster/Live Nation attorney Alan Grubman
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.”
Really?!?! You can't charge higher fees because if tickets are too high, people won't go? I guess that's why there aren't any ticket scalpers anymore because people aren't willing to pay high prices for concerts.
oh wait...
He says that because he thinks this is Canada
The whole world will be different soon the whole world will be RELIEVED
#resistgezi #resistturkey #resisttaksim #direnturkiye #direngezi
#standingman #duranadam
who the fuck does TM have on the payroll to always skate on these antitrust hearings. If what they have over concert venues wasn't a Monopoly before it sure the fuck is now
LONG LIVE ETM
I agree. I'm not saying prices will drop, I'm just saying that sometimes mergers lead to price declines.
Yep, think it's $2.50 charge, to print ticket's online using your very own ink & paper. :?
That's fucked up.
Are there any decent forums & centers out there not run by Ticketmaster/Live Nation? I don't understand why bands & their manager's don't protest and boycott arenas & places run by Ticketmaster/Live Nation. Start booking at local hockey arena's, university stadium's, festival show's etc.. that are not run by them. Don't tell me each & every know place is run by Ticketmaster/Live Nation? That's just bs.
I love my Halifax Metro Centre. They use Ticket Atlantic!
http://www.ticketatlantic.com/en/home/default.aspx
Ugh, so much for Obama's talking about corruption and holding them accountable when he gave the speech when he took the oath as the President of U.S.A. last January.... :roll:
Yeah, we should get copies of the documents and send it out to the artists every time we hear them bitching, only those who could have been supporting Pearl Jam back then.
I can only dream this would work, but I wish somehow the fans could be part of the concert plannings where they can put in their money for venues that are not afflicted with TM/LM and then get a portion of their money back (minus the ticket costs that would cover for the band's expenses) when the show or tour is over.
The fans would be investing in the band themselves and getting some money back that they put down, minus any money donated to charities, etc.... that could be written off for tax purposes.
I said I could only dream....
EV: It's your band.
~Q Magazine
"Kisses for the glow...kisses for the lease." - BDRII
dammit, I am not really worried about the actual ticket prices, it is the god damn fees that will get you. It is ridiculous
It is terrifying when you are too stupid to know who is dumb
- Joe Rogan
I totally agree. I went to a show last year and the tickets were distributed by Brownpapertickets.com and the total amount of fees they charged per ticket was less than $2.
Promoters are the ones paying the band. Guaranteeing that if they show up, they'll get paid. Live Nation is the biggest of them, and guarantees probably the best amount for the band. PJ has worked with LN and pretty much all of LN's predecessors that were bought out to become LN. PJ could decide to use a different non-LN promoter for their tour.
*NYC 9/28/96 *NYC 9/29/96 *NJ 9/8/98 (front row "may i play drums with you")
*MSG 9/10/98 (backstage) *MSG 9/11/98 (backstage)
*Jones Beach 8/23/00 *Jones Beach 8/24/00 *Jones Beach 8/25/00
*Mansfield 8/29/00 *Mansfield 8/30/00 *Nassau 4/30/03 *Nissan VA 7/1/03
*Borgata 10/1/05 *Camden 5/27/06 *Camden 5/28/06 *DC 5/30/06
*VA Beach 6/17/08 *DC 6/22/08 *MSG 6/24/08 (backstage) *MSG 6/25/08
*EV DC 8/17/08 *EV Baltimore 6/15/09 *Philly 10/31/09
*Bristow VA 5/13/10 *MSG 5/20/10 *MSG 5/21/10