UK Regulator Clears Ticketmaster-Live Nation Merger
December 22, 2009, 14 years ago
Businessweek.com is reporting:
Shares of concert promoter Live Nation Inc. and ticketing giant Ticketmaster Entertainment Inc. rose Tuesday after Britain's antitrust body reversed a previous ruling and approved the companies' merger.
Live Nation shares were up 32 cents, or 3.9 percent, to $8.47 in midday trading Tuesday, while Ticketmaster shares rose 65 cents, or 5.5 percent, to $12.41.
The Competition Commission, which previously had raised objections to the combination of the California-based companies, said Tuesday the merger wouldn't significantly reduce competition in promoting and selling tickets for live music events.
The U.S. Justice Department has yet to declare whether it will sanction the merger.
The commission previously said the merger could hurt Germany-based CTS Eventim AG, which had agreed to provide ticketing services for Live Nation's music events in Britain.
But it said Tuesday the extent of Eventim's success in the U.K. "will be determined principally by its own efforts and abilities, and will not be affected significantly by the merger."
Standard & Poor's analyst Tuna Amobi kept a "Hold" rating on shares of Live Nation, saying that while the U.K. reversal could pave the way for approval in the U.S. and Canada, some conditions might still be imposed.
"We would be surprised if the deal secures (U.S. Justice Department) approval without some meaningful concessions in key areas, such as ticketing or artist management," Amobi wrote in a research note.
