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| Version 0 | Version 1 |
|---|---|
| UK regulator clears music merger | UK regulator clears music merger |
| (31 minutes later) | |
| The merger of ticket agent Ticketmaster and concert promoter Live Nation has been cleared by the UK regulator. | The merger of ticket agent Ticketmaster and concert promoter Live Nation has been cleared by the UK regulator. |
| The Competition Commission said that the merger would "not result in a substantial lessening of competition in the market" in the UK. | The Competition Commission said that the merger would "not result in a substantial lessening of competition in the market" in the UK. |
| The decision is a reversal from its provisional ruling - in which it had said it was concerned about the deal. | The decision is a reversal from its provisional ruling - in which it had said it was concerned about the deal. |
| The US Justice Department is also investigating the proposed merger - which was announced in February. | The US Justice Department is also investigating the proposed merger - which was announced in February. |
| The managing director of Ticketmaster UK, Chris Edmonds, said the decision was as an important milestone and brought the companies a step closer to "creating a new kind of live entertainment business". | |
| Impact on competition | Impact on competition |
| The UK Competition Commission revised its opinion on two main points. | The UK Competition Commission revised its opinion on two main points. |
| Firstly, it decided that the merger would make "little difference" to the prospect of the German competitor CTS Eventim entering the UK. That was because of an agreement between Live Nation and Eventim. | Firstly, it decided that the merger would make "little difference" to the prospect of the German competitor CTS Eventim entering the UK. That was because of an agreement between Live Nation and Eventim. |
| Under the terms of this agreement, Eventim receives a fee for every Live Nation ticket sold and Live Nation will continue to be obliged to allocate a minimum number of tickets to Eventim. | Under the terms of this agreement, Eventim receives a fee for every Live Nation ticket sold and Live Nation will continue to be obliged to allocate a minimum number of tickets to Eventim. |
| The Commission concluded that "the extent of Eventim's success in the UK will be determined by its own efforts and abilities, and will not be affected significantly by the merger". | The Commission concluded that "the extent of Eventim's success in the UK will be determined by its own efforts and abilities, and will not be affected significantly by the merger". |
| The second concern was the impact the combination would have on other ticketing agents and promoters of live music events. But the regulator found that it would not be in the new merged company's interest to shut out competition. | The second concern was the impact the combination would have on other ticketing agents and promoters of live music events. But the regulator found that it would not be in the new merged company's interest to shut out competition. |
| "It would suffer significant and immediate losses, with very uncertain prospects for long-term gain", it said. | "It would suffer significant and immediate losses, with very uncertain prospects for long-term gain", it said. |
| Global giant | |
| When they announced the deal, Live Nation and Ticketmaster said the merger would improve ticket price options, increase attendance at events and make ticket technology better. | |
| Los Angeles-based Live Nation is the largest producer of live concerts in the world. According to its website, it produces more than 22,000 concerts a year for 1,600 artists in 33 countries. It also manages many of the artists who play in them. | |
| The company has signed artists including Jay-Z and Madonna to deals that include touring, publishing and albums, as well as huge concert promotion deals with the likes of U2 and Shakira. | |
| Ticketmaster is a major entertainment ticketing and entertainment group. It sold 141 million tickets in 2008. | |
| It also owns the entertainment management group Front Line Management. |