Ticketmaster Buys Azoff's Front Line for $123M; Layoffs Loom

Authored by Mark Hefflinger on October 23, 2008 - 8:26am.

Los Angeles - Ticketmaster (NASD: TKTM) announced on Thursday that it will acquire a controlling equity interest in Front Line Management, the large artist management firm run by Irving Azoff, from Warner Music Group (NYSE: WMG) for about $123 million in cash. Ticketmaster said it will also change its name to Ticketmaster Entertainment, and name Azoff CEO of the company.

"While the Ticketmaster name has been synonymous with live entertainment for some time, today we took a significant step in solidifying our position in the music business. And, we will greatly benefit in having Irving Azoff lead Ticketmaster," said Ticketmaster chairman Barry Diller.

Founded in 2004, Front Line counts nearly 200 clients, including the Eagles, Jimmy Buffett, Neil Diamond, Van Halen, Fleetwood Mac, Christina Aguilera, Stevie Nicks, Aerosmith, Steely Dan, Chicago, Journey and Guns N' Roses.

The deal calls for Ticketmaster to issue Azoff about 4.5% of its stock, while a portion of his equity stake in Front Line will be cancelled; he will also continue to serve as CEO of Front Line.

Ticketmaster's move comes as Live Nation (NYSE: LYV), the large concert promoter and venue owner, has begun expanding its services to include both ticketing and signing "360 deals" with artists that cover a range of recording and other rights.

Ticketmaster is also reportedly soon expected to lay off about 5% of its worldwide staff, or 300 employees, as part of a plan to cut $35 million in expenses.