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Live Nation + Ticketmaster: More Regulatory Buzz-kill Ahead...

Thursday, October 15, 2009
by  presnikoff

So much for a 'rubber stamp' from regulators.  After a harsh review from British authorities, the US Department of Justice (DOJ) also appears to be applying a tougher test to the proposed tie-up between Live Nation and Ticketmaster. 

That has been the growing sentiment this week, especially for the newly-slotted Obama DOJ.  "I would not be at all surprised if the first high-profile merger challenge the Obama Administration brings is with respect to the pending Ticketmaster-Live Nation merger," said Joe Angland, a partner and antitrust specialist at New York-based White & Case. 

Angland offered a tough forecast for the merger hopefuls, especially given the high-profile component of ticket pricing.  "Adding to the likelihood that the government will oppose this merger is the near universal anger consumers have about high ticket prices," Angland shared.

Now, sources to the Wall Street Journal are pointing to "serious concessions" ahead, and even some show-stopping demands.  That includes a possible requirement to divest Front Line Management, a scenario that would likely see the parties walk from the deal.



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