Live Nation and Ticketmaster to join forces

California, February 10: Live Nation and Ticketmaster Entertainment are on the verge of a merger, which would create a concert and live entertainment giant, to be called Live Nation Ticketmaster.

Board members of both the companies had planned to meet after the Grammy Awards on Sunday night, said a source close to the deal, but he declined to be identified pending a formal announcement.

If it gets the regulators’ nod, the merger would form a company with almost $6 billion in revenue, holding a chief control of major concert halls, ticketing and artist management. Besides the wide-ranging management, the company will also have easy promotion deals with big-wigs including the Eagles, Christina Aguilera, Madonna, and Jay-Z.

While big record labels are trying to stay afloat in the digital age, a joint venture between Live Nation and Ticketmaster would create a potential power centre in the music industry.

Barry Diller, the media mogul who oversaw Ticketmaster when it was part of IAC/InterActiveCorp, will reportedly become the chairman of the media giant created after merger.

Michael Rapino, the chief executive of Live Nation, will reportedly take over as the chief executive and president of the merger product.

The position of the executive chairman will be taken by Irving Azoff, the chief executive of Ticketmaster who managed the bands Guns N’ Roses and the Eagles.

Also, he will be the chief executive of Front Line Management, the largest artist management firm which was acquired by Ticketmaster. The firm will then become a unit of the combined business.

Both the companies will retain seven seats in the board of 14 and their combination will not offer any premium for the shares of either company.

Besides being profitable for the executives, the merger would also benefit the consumers as ticket buyers would be able to easily pick the seats of their choice. Also, it will help cut the confusion and sticker shock that comes when ticket handling fees is sometimes tied to the admission price.

Rivalry proved to be detrimental for both Live Nation and Ticketmaster as the two companies lost their stock value amidst competition.