US Department of Justice antitrust lawsuit sends Live Nation shares skyrocketing

Posted on May 28, 2024 by darion

Baystreet.ca – US Department of Justice antitrust lawsuit sends Live Nation stock skyrocketing<br />

Live Nation Entertainment (NYSE:LYV) is a Los Angeles-based entertainment company with operations worldwide. The company was founded in 2010 as a result of the merger of Live Nation and Ticketmaster. Live Nation promotes, operates and manages live entertainment tickets worldwide, and also owns and operates entertainment properties and manages the careers of artists.

Live Nation shares fell 7.81% on Thursday, May 23, 2024. This followed a report that the US Department of Justice and dozens of attorneys general had filed a major antitrust lawsuit aimed at breaking up the owner of Ticketmaster. These entities accuse Live Nation of unlawful domination over the concert ticket sales industry.

The lawsuit filed by the Department of Justice and 30 state and district attorneys general in federal court in the Southern District of New York accuses Live Nation of creating a monopoly in the live entertainment market that harmed music fans, artists and promoters across the United States due to higher prices and bad consumer experiences.

In response, Live Nation issued a statement saying that “it is absurd to claim that Live Nation and Ticketmaster exercise monopoly power.”

Live Nation had a record first quarter of fiscal 2024 on May 2, 2024. Revenue increased 21% year-over-year to $3.8 billion, and adjusted operating income increased 15% to $367 million. Meanwhile, fan growth increased by 21% to 23 million fans.