Live Nation and Ticketmaster Wins Clearance To Merge
By Seraphina L.
Too much dismay of indie artists and even major label artists, the merge between Live Nation and Ticketmaster Entertainment has won clearance to merge and become the new company, Live Nation Entertainment. Despite the fear of a monopoly in the industry and those who looked up to the Obama administration to lock down on certain business mergers that may severely hurt parts of the economy, this merger has made both shares of both companies incredibly higher.
According to Reuters, “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 [...] At those prices the all-stock deal would be worth $835 million.”
The U.S. Justice Department is now requiring Ticketmaster to license its main ticketing software over to Anschutz Entertainment Group (AEG). Ticketmaster will also have to sell its other ticketing unit, Paciolan Inc., and it is the Justice Department who gets to decide the buyer for this unit. The deal is officially set to be closed within a few days.
This union rubs its success in the face of indie artists and businesses because both parties have a vast wealth in resources. Ticketmaster owns Front Line Management who has more than 200 artists on its rosters including mainstream superstars such as Miley Cyrus, The Eagles, and more. Live Nation is not the only world’s biggest concert promoter but they also own major venues such as Gibson Theater and the House of Blues chain as well as long-term contracts with Madonna, Jay-Z, and more.
Some business may be very frightened. Every business is a cut-throat business no matter how small or large it is. The goal is to one up the other party. However, this vicious cycle within the business world may become an advantage for ticket consumers. Yes, Ticketmaster prices and fees have always been painfully expensive and Live Nation may take extravagance to the most unnecessary level. However, with these prices that may be going up, competitors may drastically be slashing their prices.
Some vendors may become cheaper than ever to compete with this merger and once things go full circle, this new threat called Live Nation Entertainment may just eventually join the game. It may sound far fetched as of right now, but Christine Varney, head of the Justice Department’s Antitrust Division has proposed a similar future to reporters: “I’ll be keeping a very close eye on this settlement as we go forward. You can probably expect to see three competitors and generally when you see robust competition you see prices coming down.”
Here’s to hoping that her expectations are correct. It may take a while to happen since this merger is slated to occur for ten years giving them a serious advantage, but who knows what the future will bring? Meanwhile, you can avoid the high prices and fees by supporting your indie artists and local venues!
What do you think of this Live Nation/Ticketmaster merger now that it is a reality?
