Ticketmaster and Live Nation Create Merger Concerns

Published: 2009-02-11
A proposed merger announced Tuesday between top concert promoter Live Nation and the world's dominant ticket seller, Ticketmaster has been creating some strong controversy because of lack of competition in the market. The merger worth about $316 million in stock would create a conglomeration that would generate an estimated revenue of $6 billion a year.

The deal has raised concerns amongst the justice department in the U.S. who says it will conduct an investigation of the proposed deal, which could take months. A spokeswoman for the department told the Associated Press that they are "committed to vigorous enforcement of the merger antitrust laws and will conduct a thorough investigation of the proposed Ticketmaster/Live Nation transaction."

There is no telling what this new merger will mean especially after recent allegations of Ticketmaster's proposed foul play. The company allegedly boosted prices on Bruce Springsteen tickets recently when consumers were pointed to affiliate, TicketsNow selling the same tickets for a much higher price.

The Consumers Association of Canada are planning to look into the allegations, but there has been no word from Ottawa as of yet.

Writer: Soul Shine Staff

   

 

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