U.K. Regulators Oppose Ticketmaster-Live Nation Merger

Authored by Mark Hefflinger on October 8, 2009 - 9:15am.

London - The U.K. Competition Commission has come out in opposition to the proposed $1.5 billion merger of concert promotion giant Live Nation (NYSE: LYV) and Ticketmaster (NASD: TKTM), saying it would hamper competition in the U.K. market and lead to higher prices. Specifically, the Commission said in its preliminary report that the deal would "severely inhibit" the ability of Germany-based rival CTS Eventim to enter the U.K. market.

The Commission said it would not likely impose an outright ban on the merger, but instead impose U.K.-based qualifications -- such as a U.K.-focused ban; divestiture of U.K. units; or a stipulation that Live Nation use a ticket broker other than Ticketmaster in the U.K.

"Live entertainment is now the future of the music industry," Live Nation and Ticketmaster said in a statement posted by Bloomberg.

"Both our companies are committed to this merger and look forward to addressing any and all issues that the commission deems necessary."

The U.K. Competition Commission said it will continue to consult with U.S. federal regulators, who are also examining the proposed merger, before issuing a final ruling.

Related Links:
http://snipurl.com/sek9a (PDF: Competition Commission statement)

http://www.bloomberg.com/apps/news?pid=20601102&sid=ayVgTeTjjojg