Conditions set for merger of Ticketmaster, Live Nation
LOS ANGELES—Both U.S. and Canadian governments have imposed major conditions upon Live Nation and Ticketmaster in approving the companies’ merger.
Shares in both companies jumped in trading Monday after reports surfaced earlier that the merger would be approved.
Included in the settlement is a requirement that Ticketmaster would have to license its ticketing software to competitor AEG and sell its subsidiary Paciolan to Comcast Spectacor.
The conditions would result in two large competitors — AEG and Comcast Spectacor — that would vie for ticketing contracts with the merged entity of Live Nation and Ticketmaster.
The merged company would also be under a 10-year court order prohibiting it from retaliating against venues that choose to sign ticket-selling contracts with competitors.
The Canadian Competition Bureau announced the conditions on Monday, after working with the U.S. Department of Justice on the specifics.
“The agreement strengthens competition by providing rival companies with the tools they need to compete more effectively against Ticketmaster,” said commissioner Melanie Aitken said in a release.
Ticketmaster, based in West Hollywood, Calif., is the world’s largest seller of tickets to live concerts and other entertainment events online payday loans. It also owns an artist management company, Front Line Management, and a ticket-reselling company called TicketsNow.com.
Live Nation, based in Los Angeles, is the largest U.S. concert producer. It also owns entertainment venues and in January launched its own ticket-selling business, which currently competes with Ticketmaster.
In the U.S., assistant attorney general Christine Varney said that the merger would have the effect of lowering ticket prices.
Varney said the deal as proposed would have been “anticompetitive.”
“It’s going to benefit competition and benefit consumers,” she said. “Generally when you see robust competition, you would expect to see prices coming down.”
The companies had no immediate comment.
Shares in Ticketmaster rose $2.22 (U.S.), or nearly 17 per cent, to $15.52 in afternoon trading, while shares in Live Nation went up $1.47, or 16 per cent, to $10.63.
With files from The Canadian Press
Filed under: economics by Finance Boss