New scenarios emerge in the lawsuit filed last Thursday against Live Nation Entertainment, owner of Ticketmaster since the merger in 2010. The Department of Justice added internal emails, written by Chief Executive Michael Rapino and other high-level figures, to support the accusations of violating antitrust laws, which now give a glimpse into an unexpected background.
The New York Times reported a particular episode that happened in 2021, on the occasion of a highly anticipated benefit show by Kanye West and Drake at the L.A. Coliseum. The concert was managed by TEG, an Australian ticketing and promotions company owned by the private equity firm Silver Lake. Silver Lake had also invested in Oak View Group, a venue management company with close ties to Live Nation. TEG set up a deal to sell some tickets through StubHub and, on the day of the concert, hundreds of customers were refused entry after Live Nation interfered. Meanwhile, Mr. Rapino had complained to co-founder of Oak View Group Irving Azoff that he considered TEG as a competitor and the deal as “an insult,” threatening to stop investing in the management company. Mr. Azoff then pushed Silver Lake to sell TEG by offering it to Mr. Rapino. And that is one of the heaviest accusations the DOJ moves against Live Nation: acquiring a number of companies with an aim to eliminate the competition in both concert promotion and ticketing.
Live Nation responded that this case “reveals not only a disregard for the facts, but also deep hypocrisy.” It is an attempt to portray the world’s largest concert promoter “as the cause of fan frustration with the live entertainment industry.” They stated they are not a monopoly–rather, that they suffer from competition, “now more than ever”–and that the lawsuit “won’t reduce ticket prices or service fees.”
Live Nation also denied the accusations of withholding shows from Barclays Center in Brooklyn, New York when the venue used a rival ticket seller.
