Ticketmaster, Live Nation in talks to merge: report
Music industry giants Ticketmaster Entertainment Inc. and Live Nation Inc. are on the verge of an all-stock merger, the Wall Street Journal said Wednesday, citing people close to the matter.
The deal to create a combined company called Live Nation Ticketmaster would be a "merger of equals," said the Journal, bringing together the world's largest concert promoter and the world's preeminent ticket seller and artist-management company.
If approved by both company boards, the new firm would be able to manage music from its creation in the studio to live concerts, handling everything from recording music to sponsoring tours and selling tickets, the Journal said.
The new firm would have close ties to over 200 recording artists, including popular culture giants Madonna and Jay-Z.
But if approved the risk for smaller concert promoters is palpable, the newspaper said, as the combined firm would be able to "muscle out" other companies and consolidate power to dictate ticket prices.
Antitrust authorities would be required to review the deal, which could be announced as early as next week, because a merger between the massive firms concentrates so much of the music industry under one roof, said the Journal.
Ticketmaster is worth a bit less than Live Nation -- with the ticket seller's market capitalization being 351 million dollars compared to tour promoter's 390 million dollars -- but Live Nation has more debt on its books, and less cash, said the daily.
Copyright 2009  AFP Global Edition
