Competition Commission Clears the Proposed Merger of Ticketmaster and Live Nation in the UK

The Competition Commission has decided to clear the proposed merger of Ticketmaster and Live Nation in the U.K. The Commission decided that the merger of these two companies will not result in a "substantial" lessening of competition in the market.

A statement from both Ticketmaster and Live Nation indicated that they were optimistic there will be a successful outcome in the US.

The goal of this merger is to create a new kind of live entertainment business for the entire sector.

The push back from other ticket brokers and event promoters is that the merger will give Ticketmaster and Live Nation the power to increase ticket prices, or harm its competitors in different parts of the supply chain. The Commission disagrees and states that they would suffer significant short term losses in pursuit of very uncertain long term gains.

We will have to wait and see how this turns out.

Proposed Merger Draws Cooncern from Congress

The proposed merger between Ticketmaster and Live Nation has members of congress, public interest advocates and ticket brokers concerned.

These groups have teamed together to launch a site www.ticketdisaster.org outlining areas the merger could have a negative affect on. Key bullet points such as the increase in concert ticket prices and further promoting competitive practices in the entertainment business. US Rep. Bill Pascrell Jr. (D-NJ) said "these web sites will give the fan, the ticket buyers, the information they need to understand how they will be affected by the proposed merger as well as give them the chance to voice their opposition to the pending deal to the U.S. Department of Justices antitrust authorities."

The merger between the two companies is somewhere in the range of $2.5 billion.