DOJ to Seek 'Major Concessions' on Live Nation-Ticketmaster

Authored by Mark Hefflinger on October 16, 2009 - 8:06am.

Washington - The U.S. Justice Dept. is providing "stiff resistance" to the proposed $1.5 billion merger of concert promoter Live Nation (NYSE: LYV) and Ticketmaster (NASD: TKTM), and will require "major concessions" from the companies if it is to approve any deal, The Wall Street Journal reported, citing several people familiar with the situation. One source said there are elements of the deal in its current form that would prompt the Justice Dept. to sue to block it from happening.

Antitrust concerns on the deal are said to include its potential to reduce competition and thus harm consumers, as well as musicians -- "who could be forced to do business with a single entity when booking concert tours," The Journal reported.

Sources told The Journal that the Justice Dept. has thus far "provided little guidance on the kind of steps that might be required" to alleviate its antitrust concerns, such as divestiture of any particular units.

A source also said that the deal includes a clause stipulating that the two companies could back out of the deal should they be asked by antitrust regulators to divest ownership of Front Line, the artist management firm acquired by Ticketmaster that was founded by Irving Azoff, who is now CEO of Ticketmaster.

Related Links:
http://snipurl.com/sjy4s (WSJ)

http://www.ticketmaster.com

http://www.livenation.com