Live Nation stock tumbles following reports of DOJ action
Live Nation shares fell 7.3 percent on Friday, Dec. 13 following reports of pending Department of Justice legal action against the entertainment company. Reported by The Wall Street Journal, the news details that Live Nation unfairly pressured concert venues to use its Ticketmaster subsidiary. Consequently, shares closed at $64.34, down $5.09 on the day. The drop also tumbled $1 billion off Live Nation’s market cap of $13.8 billion.
The DOJ has taken action against Live Nation on the grounds that the concert promoter has violated its 2010 merger agreement with Ticketmaster which details that the companies would not retaliate against venues that chose another ticketing service. The DOJ’s pursuit of legal consequences would extend the agreement restrictions for several years past its expiration date of 2020.
Live Nation came under fire earlier this year in August when Assistant Attorney General of DOJ’s antitrust division Makan Delrahim confirmed that the company was under investigation for alleged anti-competitive practices.