LiveNation and Ticketmaster Entertainment may announce a merger later on this week, according to Reuters. If the union between the two companies were to occur, it would signify the emergence of a powerful music industry presence with a joint market value of over $700 million. Dubbed “LiveNationTicketmaster,” the conglomerate would consist of the world’s largest concert promoter, and one of the top ticketing companies. Together, the firms are linked to more than 200 artists including Madonna, Shakira, and Jay-Z.
Live Nation made headlines back in April of ’08 after landing a $150 million deal with artist Jay-Z [click to read]. Although Live Nation deals mostly with concert promotion, the company has been expanding business ventures by signing “360” record deals with artists, most of who get to keep the rights to their own music.
There are a few problems facing the possible merger, including managerial and contract matters. One issue that consumers face will be Live Nation Ticketmaster’s stronghold on concert tickets. As a huge influence on concert ticket sales, many fear that ticket prices will be driven up and that the powerhouse’s success will translate into a potential monopoly.
As one music label source tells the Los Angeles Times, “[The merger may] face antitrust issues from managers, record companies, ticketing companies, and concert promoters to name a few—not to mention the Obama administration will be very tough on this stuff.”
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More information on the merger is expected to be released later on this week.
