Ticketmaster-Live Nation antitrust problems

by JeffHuang | February 5, 2009 at 10:24 am

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The Live Nation and Ticketmaster merge could be facing antitrust issues as these two giant corporations could threaten the competitive process in the entertainment business. The integration of the biggest owner of concert venues in Live Nation and Ticketmaster, the predominant ticket seller "could be the biggest and most important deal ever in the music industry" says Ray Waddell. The antitrust problem arises when the competitiveness is in jeopardy which may drive the prices up and performer payments down.

The Obama administration may soon face the first major test of its approach to antitrust policy if Live Nation (LYV) and Ticketmaster Entertainment (TKTM) try to merge, creating a concert colossus.

Shares of the two companies soared this morning with Ticketmaster rising 13% to $6.96 and Live Nation rising 5% to $5.22. The live entertainment industry generated $2.8 billion in domestic ticket sales last year.