There’s nothing quite like a bit of monopoly-bashing! Hot on the heels of the U.K.’s Competition Commission making a preliminary ruling against the merger of Ticketmaster and Live Nation, it is now likely that U.S. regulators will coordinate with the British authorities to impose conditions on the deal. This could mean “Ticketmaster and Live Nation will be forced to sell off assets, or forced to sell some concert tickets through a competitor.”
Regulators (and especially Bruce Springsteen) are concerned that the merger of Ticketmaster (the largest seller of tickets to entertainment venues in the U.S.) and Live Nation (the world’s largest concert promoter) would create a behemoth that “could control every part of a live concert, from artist management and promotion to venue management, merchandise sales, and ticket sales and resales,” in the words of Ken Solky, President of the National Association of Ticket Brokers. The two companies, however, maintain that the deal is necessary to “strengthen a flagging music industry.”
Lawyers, sensing an excellent opportunity to make millions of dollars, suggest that both Ticketmaster and Live Nation went into this agreement knowing they would have to make some compromises. Mark Ostrau, an antitrust lawyer with Mountain View-based Fenwick & West LLP, said “I think the writing is on the wall that the deal is not going to happen without some fix," while Kevin Arquit, another antitrust lawyer, argued “The fact that the U.K. regulators acted puts the U.S. more on the spot.” The deal has also provoked consternation in Congress with 50 House members wanting Justice officials to take some kind of action.
“Live Nation shares fell nearly 6 percent Thursday, while Ticketmaster shares fell more than 4 percent,” (waaaaghhh!).
