This article is from the source 'bbc' and was first published or seen on . It will not be checked again for changes.
You can find the current article at its original source at http://news.bbc.co.uk/go/rss/-/1/hi/business/8425753.stm
The article has changed 7 times. There is an RSS feed of changes available.
| Version 3 | Version 4 |
|---|---|
| UK regulator clears music merger | UK regulator clears music merger |
| (20 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 of its provisional ruling. It had been concerned the deal would lead to higher prices and lower quality of service. | The decision is a reversal of its provisional ruling. It had been concerned the deal would lead to higher prices and lower quality of service. |
| The US Justice Department is also investigating the proposed merger. | The US Justice Department is also investigating the proposed merger. |
| Impact on competition | Impact on competition |
| The UK Competition Commission revised its opinion that the deal could lead to music fans paying more for tickets to see live performances. | The UK Competition Commission revised its opinion that the deal could lead to music fans paying more for tickets to see live performances. |
| The regulator found that it would not be in the new merged company's interest to shut out competition. | The regulator found that it would not be in the new merged company's interest to shut out competition. |
| The new company "would suffer significant and immediate losses, with very uncertain prospects for long-term gain," the Competition Commission said. | The new company "would suffer significant and immediate losses, with very uncertain prospects for long-term gain," the Competition Commission said. |
| For music gigs to make money, they usually need to sell out. Therefore, the regulator concluded that it would not be in Live Nation's interest to stop ticket sales through channels other than Ticketmaster. | |
| Similarly for Ticketmaster, the regulator believes it would not be in its interest to stop promoting events organised by companies other than Live Nation - because consumers may then go elsewhere. | |
| The Competition Commission had also been concerned that the deal would hinder plans for German rival CTS Eventim, with which Live Nation already has a partnership agreement, to enter the UK market. | |
| 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 deal has been approved in Norway and Turkey. The US and Canada have yet to give their rulings. | The deal has been approved in Norway and Turkey. The US and Canada have yet to give their rulings. |
| Global giant | Global giant |
| When they announced the deal in February, Live Nation and Ticketmaster said the merger would improve ticket price options, increase attendance at events and make ticket technology better. | When they announced the deal in February, 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. | 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. | 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. | 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. | It also owns the entertainment management group Front Line Management. |
| 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". | |
| Paul Latham, from Live Nation UK, said: "We have reassured [fans, artists and others] that by combining the resources of these two companies, we will deliver a better live music experience for the entire sector." |