Why Ticketmaster Owner Live Nation's Shares Are Tumbling Today

Live Nation Entertainment Inc LYV shares are trading lower on Thursday as the company faces a legal challenge after the U.S. Department of Justice and several states prepare to file an antitrust lawsuit against the entertainment giant over its control of concert ticket sales.

According to Bloomberg, the case, which is expected to be filed in the Southern District of New York on Thursday, could lead to the company’s breakup.

The lawsuit targets Live Nation’s dominance in the ticketing market through its subsidiary Ticketmaster.

This lawsuit is part of the Biden administration’s broader strategy to tackle monopolistic practices in various industries.

The Justice Department has already initiated legal actions against tech giants like Alphabet Inc. GOOG and Apple Inc. AAPL, while the Federal Trade Commission is pushing for Meta Platforms Inc META. to divest its Instagram and WhatsApp units and has sued Amazon.com Inc. AMZN for monopolistic practices in the online marketplace.

Following the news of the impending lawsuit, Live Nation’s shares fell, highlighting investor concerns over the potential outcomes of the legal action.

Live Nation, the largest concert promoter in the United States, merged with Ticketmaster in 2010. The merger was initially approved under the Obama administration with conditions designed to prevent anticompetitive practices.

However, under the Trump administration, the Justice Department found that Live Nation had violated these conditions, leading to a modified settlement in 2019 that included the appointment of an external monitor to oversee compliance.

The Biden administration launched a new investigation into Live Nation in 2022, prompted by ongoing concerns about the company’s adherence to the settlement terms.

Public interest in the case surged after Ticketmaster struggled to handle the overwhelming demand for Taylor Swift concert tickets later that year, bringing further scrutiny to Live Nation’s practices.

Live Nation stock has gained more than 23% in the last 12 months. Investors can gain exposure to the stock via Invesco S&P 500 Pure Growth ETF RPG and First Trust Consumer Discretionary AlphaDEX Fund FXD.

Price Action: LYV shares are trading lower by 6.11% at $95.20 in the premarket at the last check on Thursday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Photo via Midjourney