“What an unpopular melody,” said Lex in the FT. The planned $2.5bn tie up between Ticketmaster and Live Nation has upset everyone from US senators to Bruce Springsteen. The world’s largest concert promoter and its top ticket seller could create a new “entertainment powerhouse of game-changing proportions”, said Ethan Smith in The Wall Street Journal.
But many fear this could be “The Day the Music Died”, as Paul La Monica put it on CNNMoney.com. The deal is sure to attract the interest of the competition authorities, says Lex in the FT.
Ticketmaster has a reputation for gouging concert goers with service fees that can add 15-50% to the cost of a ticket. And the merger would combine managing artists with concert production, venues and ticketing. “With interests from singer to stage, the company could squeeze competitors in each area.”
It makes plenty of sense to the two music giants, however. Live Nation needs cash. It spent a fortune locking in artists and has nearly $600m in net debt, noted Jeff Segal on Breakingviews.com. Ticketmaster has $550m of cash on hand, although its business is declining. Pairing off helps Live Nation pay its debts and offers Ticketmaster some hope of future profits.
For now, at least, the marriage “seems defensive”.
TKTM: $5; 12m change n/a
LYV: $4; 12m change -54%