Ticketmaster is a major ticket sales and distribution company based in the United States. Over the years, Ticketmaster has been involved in several major mergers and acquisitions as it has grown into one of the largest ticketing companies in the world. The most notable merger in Ticketmaster’s history was with Live Nation in 2010, which created the Live Nation Entertainment company that exists today.
History of Ticketmaster
Ticketmaster was founded in 1976 by two computer programmers, Albert Leffler and Gordon Gunn, along with Leffler’s brother-in-law, Peter Gadwa. The company was created to provide ticket sales services for venues and promoters using computerized systems. In its early years, Ticketmaster expanded by providing ticketing services for major sports teams, theaters, concert venues, and music festivals.
Some key events in Ticketmaster’s history:
- 1982 – Ticketmaster is purchased by Jay Pritzker, founder of the Hyatt hotel chain
- 1991 – Microsoft partners with Ticketmaster to distribute tickets online
- 1996 – CitySearch.com merges with Ticketmaster Online
- 1998 – USA Networks, Inc. merges with Ticketmaster
- 2003 – Ticketmaster acquires its major competitor, Tickets.com
By the late 1990s and early 2000s, Ticketmaster had established itself as the dominant ticket distributor in the United States. However, the rise of the internet brought new competition from online ticketing services. This led Ticketmaster to pursue major mergers to maintain its strong market position.
Live Nation Merger
In 2005, Ticketmaster acquired CTS Eventim, a European ticketing company. This expanded Ticketmaster’s operations internationally.
Then in 2008, Ticketmaster announced plans to merge with Live Nation, the world’s largest concert and event promoter. Live Nation had recently started its own ticketing service to compete directly with Ticketmaster. The merger was seen as a way for the companies to benefit from combined resources and eliminate the growing competition between them.
Some key details about the Live Nation-Ticketmaster merger:
- The merger was an all-stock deal valuing Ticketmaster at $2.5 billion.
- The two companies combined their ticketing, promotions, and artist management businesses.
- The new company was named Live Nation Entertainment with more than 140 million ticket sales across 19 countries.
- Live Nation Entertainment became the largest ticketing company and concert promoter in the world.
The merger was controversial and faced anti-trust investigations by the U.S. Department of Justice. However, the merger was ultimately approved in January 2010.
The Ticketmaster brand still exists today as the primary ticketing service within Live Nation Entertainment’s business. Live Nation Entertainment reported $10.8 billion in revenue in 2018, demonstrating the success of the merger in consolidating the live entertainment industry.
Impact of the Live Nation Merger
The merger with Live Nation had several significant impacts on Ticketmaster:
- Eliminated direct competition between Ticketmaster and Live Nation’s in-house ticketing services.
- Combined Ticketmaster’s ticket selling platform with Live Nation’s vast network of venues, festivals, and promoters.
- Provided new opportunities for bundled ticketing and promotions across Live Nation Entertainment’s businesses.
- Expanded Ticketmaster’s ticket distribution capabilities to Europe through CTS Eventim.
- Increased Ticketmaster’s size and market power in the ticketing industry.
Together with Live Nation, Ticketmaster has maintained its position as the primary ticketing service for the majority of major concert venues and events in the United States. It has also expanded globally in places like the UK, Ireland, Germany, Australia, and Brazil.
However, the merger also received criticism for creating a company with too much power in the live music industry. There are concerns about high ticketing fees and lack of competition. But Live Nation Entertainment continues to thrive as the dominant player in live entertainment ticketing and promotions.
Other Ticketmaster Acquisitions
In addition to the major Live Nation merger, Ticketmaster has made other strategic acquisitions over the years to grow and diversify its ticketing services.
Some of the notable companies acquired by Ticketmaster include:
- TicketWeb – Acquired in 2000, TicketWeb expanded Ticketmaster’s services to smaller music venues and promoters.
- Paciolan – Acquired in 2008, Paciolan provided ticketing services for sports teams, college sports, and performing arts centers.
- Front Line Management – Acquired from Live Nation in 2013, Front Line manages prominent musicians.
- Universe – Acquired in 2014, Universe sells DIY ticketing services and tools for smaller event promoters.
- Ticketbis – Acquired in 2018, Ticketbis is a Spanish secondary ticket marketplace.
Through these acquisitions, Ticketmaster has been able to consolidate its position across the ticketing industry beyond just major concerts and events. It can now provide ticketing services and tools for a wide range of venues and promoters of all sizes.
Conclusion
In summary, the most significant merger in Ticketmaster’s history was with Live Nation Entertainment in 2010. This transformed the two companies into the world’s largest live entertainment and ticketing corporation. The merger combined Ticketmaster’s dominant ticketing platform with Live Nation’s vast concert and venue operations. This created new opportunities for bundled services and eliminated head-to-head competition.
The Live Nation merger expanded Ticketmaster’s global reach and solidified its power in the ticketing industry. While controversial, the merger has been widely regarded as successful in bringing together the two leading players in live entertainment. Ticketmaster has continued to make strategic acquisitions over the years to further integrate vertically and diversify its ticketing services across different venues, events, and promoters. The company remains a titan in ticketing over 40 years after it first helped transform the industry by introducing computerized systems.