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The merger between Live Nation and Ticketmaster has taken center stage of the music industry, but there's hardly any cheering for this act.
The two agreed to a $2.5 billion merger earlier this week.
If approved, the newly-combined company - to be be called Live Nation
Entertainment - would become a powerhouse in the music industry,
bringing together Live Nation, a leading concert promoter, handling artists, such as U2, Madonna, and Jay
Z and Ticketmaster, the nation's largest ticket sellers for concerts.
But concert groupies and performing artists are concerned.
At issue, a combined entity will likely increase ticket sales for music fans.
Performing artist and New Jersey native Bruce Springsteen is a vocal critic against the deal. He posted an open letter raging against the way Ticketmaster handled tickets to one of his concerts. At issue,
some fans trying to buy Springsteen tickets via Ticketmaster were redirected to TicketsNow.com, where the tickets were offered for well above face value. This, even though Ticketmaster still had tickets at original and lower prices.
Springsteen wrote in his letter: "A final point for now: the one thing that would make the current ticket situation even worse for the fan than it is now would be Ticketmaster and Live Nation coming up with a single system, thereby returning us to a near monopoly situation in music ticketing... If you, like us, oppose that idea, you should make it known to your representatives.”
Additionally, the attorneys general in New Jersey and Connecticut opened investigations while Rep. Bill Pascrell Jr., Democrat, NJ, wants a federal inquiry into Ticketmaster's use of its secondary marketplace, according to the Washington Post. And, to top it all, the U.S. Justice Department is reviewing the deal.
It does look like this deal has a lot of thorny issues, not to mention the many problems Ticketmaster alone has. But whether the proposed merger is allowed to go through or not, it sure will be an entertaining process to watch.
Bring out the popcorn.
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