West Hollywood, California (Thursday, October 29, 2009) - Bloomberg News reported last week that Ticketmaster, West Hollywood’s largest employer, and its proposed merger partner Live Nation of Beverly Hills intend to sell off ticketing assets to salve Justice Department anti-trust lawyers’ concerns about that merger posing a virtual monopoly in live concert ticketing. 
Photo by WeHo News. |
The two companies combined would dominate the nation’s live music industry, blending Ticketmaster’s ticketing domination with Live Nation’s control over concert promotion, venue operation and artist management, say anti-trust experts.
Because Live Nation kicked off its own competing ticketing system in early 2009, merging the two ticketing operations would amount to monopoly, last week Justice Department attorneys told the betrothed that they would block the merger unless the partners-to-be made way for ticket selling competition.
Bloomberg reports that executives of Ticketmaster and Live Nation have said combining the assets will create a new model for the music business focused on live performance instead of on recorded-music sales, which are in decline.
The combined market value of the two companies is about $1.3 billion.
U.S. lawmakers, rival companies, consumer advocacy groups and artists including Bruce Springsteen have fought the deal, saying it would consolidate too much power in live entertainment and may lead to higher ticket prices.
Tickemaster headquarters as seen from below its Sunset Strip perch. Photo by WeHo News. |
Experts questioned whether the companies could divest enough ticket assets to satisfy both regulators and investors because of the concentration of artists and venues that also follows from a merger.
Ticketmaster’s Front Line Management represents more than 200 artists; Live Nation operates almost 140 venues.
“The big question is, can it be saved?” said Andrew Gavil, who teaches antitrust law at Howard University in Washington. “Can you, through divestitures or through other limitations, make it possible for the merger to go forward without it being anti-competitive?”
The week before the U.S. Justice Department issued its conditions, the U.K.’s antitrust regulator issued a preliminary ruling challenging the merger, saying it would inhibit competition for ticket sales.
Printer-friendly
E-mail to friend
