TicketMaster to Merge with Live Nation

: Image by midnightglory via Flickr

Well, maybe they listened for once. After last month’s Phish phiasco, this doesn’t surprise us at all.

According to Paidcontent, Live Nation and Ticketmaster have entered into a definitive agreement to merge into an entity called Live Nation Entertainment.

The companies will be combined in a tax-free, all-stock merger of equals with a combined enterprise value of approximately $2.5 billion. Under the agreement, Ticketmaster shareholders will receive 1.384 shares of Live Nation common stock for each share of Ticketmaster they own, subject to certain adjustments defined within the agreement. Live Nation and Ticketmaster shareholders will each own approximately 50 percent of the combined company. The new company anticipates generating approximately $40 million of operating synergies through the combination of their ticketing, marketing, data centers and back-office functions.

Ticketmaster focuses on online ticket sales while Live Nation focuses on event promotion. The merger still has to go through a regular review before it can happen, which could be tricky given that many feel that Ticketmaster monopolizes the ticket industry already.