Live Nation, Ticketmaster Propose $2.5 Billion Merger

Authored by Mark Hefflinger on February 10, 2009 - 9:21am.

Los Angeles - Confirming a report in the Wall Street Journal last week, concert promotion giant Live Nation (NYSE: LYV) and Ticketmaster (NASD: TKTM) on Tuesday announced plans to merge, in an all-stock transaction valued at $2.5 billion. If approved by federal regulators, the deal would create the world's largest live entertainment company, Live Nation Entertainment, which "will have the tools to expand access, improve transparency and deliver artists and fans more choice -- driving greater attendance at live events and bringing more value to all major constituents in the industry," the companies said.

"It was less than two months ago that Ticketmaster ended its 10-year partnership with Live Nation, and I'm extremely glad we could reunite with this combination," said Ticketmaster Entertainment chairman Barry Diller.

"No different from any other industry, the challenges are all around every aspect of live entertainment. Being able to put Live Nation and Ticketmaster into an equal partnership will allow the companies to get through this difficult period and be able to expand live entertainment options to audiences throughout the world."

The combined company anticipates generating around $40 million in savings by combining their ticketing, marketing, data centers and back-office functions.

It would be led by Barry Diller as chairman, Michael Rapino as president and CEO, and Irving Azoff as executive chairman.

Pending Justice Department approval, the deal is expected to close in the second half of 2009.

Poll: Is The Proposed Merger Between Live Nation and Ticketmaster a Good Thing For Consumers?

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