Yes, Live Nation did acquire Ticketmaster in a merger deal worth $2.5 billion in 2008. The merger brought together the world’s largest concert promoter, Live Nation, with the dominant ticketing company, Ticketmaster, to create a new company called Live Nation Entertainment.
The Merger Between Live Nation and Ticketmaster
In 2007, Live Nation and Ticketmaster began discussing a potential merger between the two companies. At the time, Live Nation was the largest concert promoter in the world, contracting with artists and venue owners to put on shows and tours. Ticketmaster was the primary ticketing service that concert goers used to buy tickets for Live Nation’s events. Bringing the two companies together aimed to create a vertically integrated music industry giant.
On February 10, 2009, it was announced that Live Nation and Ticketmaster would merge in an all-stock deal valued at $2.5 billion. Under the terms of the merger, Ticketmaster shareholders received 1.384 shares of Live Nation stock for each share of Ticketmaster stock they owned. This set the exchange ratio at 1.474 Live Nation shares per Ticketmaster share. The combined company would be known as Live Nation Entertainment.
Live Nation Entertainment became the largest live entertainment company in the world. It consolidated the businesses of a concert promoter, venue operator, ticketing company, and artist management group all under one roof. The deal gave Live Nation Entertainment control over tour promotion, venue operations, ticketing platforms, artist management, and more within the live music industry.
Reasons for the Merger
There were a few key reasons why Live Nation and Ticketmaster decided to merge in 2008:
- Gain scale and leverage over the industry – Together the companies could exert more control over venues, promoters, and artists.
- Expand business opportunities – The combined company could cross-sell ticketing and promotions services.
- Greater efficiency and cost savings – Consolidating operations and overhead expenses promised major cost synergies.
- Streamline the concert experience – Fans could more easily purchase tickets, find show information, and access live entertainment.
By merging the two largest players within live entertainment, the deal aimed to capitalize on synergies and complementaries across music promotions, ticketing, sponsorships, advertising, and artist management.
Criticism and Regulatory Approval
The proposed merger between Live Nation and Ticketmaster drew criticism from consumer groups and competitors. Critics argued that the combined company would have too much power and control over the live music value chain. There were concerns that the merger could lead to higher ticket prices, less choice for consumers, and barriers to entry for competitors.
The U.S. Department of Justice conducted an investigation into the competitive effects of the merger. After a yearlong review, the DOJ approved the merger in January 2010 under the condition that the companies license a competitor, Anschutz Entertainment Group (AEG), to become an additional major national ticketing service. The DOJ concluded that the creation of another ticketing competitor alongside Live Nation Entertainment would address the main antitrust concerns.
Post-Merger Developments
Since completing the merger in 2010, Live Nation Entertainment (LYV) has grown into a live entertainment giant. Some key developments include:
- Total revenue has grown from $5.1 billion in 2010 to $10.7 billion in 2019, driven by increased concert promotion activity.
- The company sold over 500 million tickets from 2010 to 2019, averaging over 70 million ticket sales per year.
- Live Nation’s share price increased over 340% in the decade after the merger (from $10.40 in Jan 2010 to $55.69 in Dec 2019).
- The Ticketmaster ticketing platform continues to be the primary source of tickets for Live Nation concerts and events.
- Competitors like AEG, StubHub, SeatGeek, and Eventbrite have emerged but with much smaller market share.
While the Live Nation-Ticketmaster merger created a dominant player in live entertainment, it did not lead to the monopoly power over ticketing and promotions that some predicted. Competitors have entered the space and provided alternatives for artists and fans. Still, Live Nation Entertainment remains by far the biggest force within the industry.
Conclusion
The merger between Live Nation and Ticketmaster in 2010 for $2.5 billion combined the world’s top concert promoter and top ticketing company into Live Nation Entertainment. While critics warned of negative effects, the deal helped Live Nation grow significantly over the past decade by consolidating control over promotions, venues, sponsorships, ticketing, and artist management. The company continues to thrive today across its business segments even with increased competition. Ultimately, the blockbuster merger succeeded in strengthening Live Nation’s position as the largest player within the live music ecosystem.
