The Stage

Live Nation’s merger with Ticketmaster to be investigated

Published Wednesday 10 June 2009 at 19:06 by Michael Quinn

The merger between the world’s largest concert promoter, Live Nation, and global ticketing giant, Ticketmaster, looks in doubt after being referred to the Competition Commission by the Office of Fair Trading.

In a statement explaining its decision, the OFT said it “believes that there is a realistic prospect of a substantial lessening of competition resulting from the proposed merger”.

The OFT also expressed concerns about the possible consequences for Europe’s largest ticketing agent, CTS Eventim, with whom Live Nation had entered into an agreement to service its UK-based activities following the expiration of its current agreement with Ticketmaster in December this year. The proposed merger, the OFT added, created “the prospect that CTS will withdraw from the UK market” altogether or “that its competitive strength could be significantly reduced without the full benefit of the arrangement with Live Nation”.

Announced in February this year, the new Live Nation Entertainment conglomerate would have a combined value of more than £1.75 billion. Live Nation currently produces more than 22,000 concerts for 1,600 artists in 33 countries and sells over 50 million tickets each year. It has also revolutionised artist contracts with its “360 degree deals” with global superstars Madonna and U2.

With 10,000 clients, Ticketmaster operates in 20 international markets and boasts one of the largest e-commerce sites as well as 6,700 retail outlets and 19 call centres worldwide. In 2007, it sold more than 142 million tickets valued at £5.8 billion.

A ruling by the Competitions Commission on the merger, which is also the subject of an investigation by the US Justice Department, is due on November 24.