Breaking News
February 03 2009, 06:40 PM
Filed in: Music News
...from the Wall Street Journal:
"Ticketmaster and Live Nation are close to a merger, in a deal that would consolidate two of the most powerful forces in the music industry under one roof."
Wall Street Journal
FEBRUARY 3, 2009, 9:20 P.M. ET
Live Nation, Ticketmaster May Merge
Deal Would Create New Powerhouse in the Music Industr
By ETHAN SMITH
Ticketmaster Entertainment Inc. and Live Nation Inc. are close to a merger, people familiar with the matter said, in a deal that would consolidate two of the most powerful forces in the music industry under one roof.
The newly created company would be called Live Nation Ticketmaster, and would combine the world's biggest concert promoter with the world's dominant ticketing and artist-management company. The combined firm would be able to take advantage of close relationships with hundreds of major artists to find new ways to do business in the ailing music industry.
The boards of both companies have yet to approve any merger, these people said, and sticking points remain. One potential hitch: Because the merger would concentrate so much power in the music industry under one company it would require review by antitrust authorities. Nonetheless, the deal, which would not entail an exchange of cash, could be announced as early as next week.
Spokesmen for Live Nation and Ticketmaster did not respond to requests for comment.
The new company would have close ties with over 200 artists, thanks to Ticketmaster's acquisition last year of Front Line Management, a firm whose dozens of artist managers handle the affairs of around 200 major acts, including The Eagles, Miley Cyrus and Christina Aguilera. That transaction vaulted Front Line's veteran chief executive, Irving Azoff, to the helm of Ticketmaster.
Live Nation brings to the table close ties of its own to several major artists, including Madonna and Jay-Z, both of whom have signed far-reaching pacts that pay them hundreds of millions of dollars for a broad range of rights.
The structure of the new entity has not been nailed down, and it is not entirely clear, for instance, what titles would be held by Mr. Azoff and Live Nation Chief Executive Michael Rapino. Both men are expected to remain at the combined organization.
