TICKETMASTER REPORTS SECOND QUARTER LOSS

Ticketmaster Entertainment Inc (TKTM.O) posted a 70 percent slump in second-quarter profit, hurt by lower ticketing revenue, especially in the concerts category. The company, which is in a protracted merger with world's largest concert promoter Live Nation Inc (LYV.N), earned $6.9 million, or 12 cents a share, compared with $23 million, or 41 cents a share, a year ago. Revenue fell 7 percent to $355.1 million. Ticketing revenue fell 18 percent to $311.9 million due to an 11 percent decrease in the number of tickets sold. Ticketing revenue from the concerts category had the largest volume decline as the company's principal ticketing agreement with concert promoter Live Nation expired.

(REUTERS)

AEG to terminate contract with Tickemaster

Anschutz Entertainment Group (AEG) has announced that it will terminate its ticket contract if Live Nation and Ticketmaster merge. AEG is a rival to Live Nation. Ticketmaster is not really concerned since revenus from AEG only counted for 10% of its revenues. AEG owns concert the Staples Center in LA and the Nokia Theater in NY.

Live Nation's Micheal Rapino fights for Merger

“We will be able to deal with all of Sam’s concerns,” Rapino said in a recent statement concerning the the comment made by Sam Shapiro of Shapiro Capital Management. Mr. Shapiro is concerned with the leadership role that Barry Diller will be taking with company. Shapiro Capital Management is Live Nation Inc.'s largest shareholder. As the chairman of Ticketmaster Barry Diller and will retain the same position in the merger. "I’m very much against going into business with Mr. Diller” because of poor returns from companies he leads" stated Shapiro in a recent interview. The merger will make Live Nation one of the largest ticket sellers worldwide causing a monopoly in ticket sales.

Tickemaster and Live Nation Merger Could Mean Higher Ticket Prices!

Since Live Nation and Ticketmaster have announced a merger many have spoken out against it including recording artist Bruce Springsteen. The merger will have Ticketmaster drop its name and take on Live Nation. The merger will value the company at $2.5 billion. Artist's don't like the merger because with one company holding majority ticket sales there is no competition. In one report Barry Diller (chairman of Ticketmaster) and Micheal Rapino stated how the believe the merger would benefit fans: "Technology investments would allow for paperless ticketing and afford fans “better access to shows.” It’s unclear, though, what they meant by “better access.” Rapino also said that the combined company would be able to increase attendance at live events, but outside of additional marketing muscle, it’s unclear how fans would suddenly start buying more tickets just because the two companies are now one. And Rapino didn’t elaborate"(Tameka Kee-paidcontent.org). Ticket sales can be increase which can mean very few sold out shows for artists especially with the state that the economy is in at the moment.