Merger Would Create Biz Giant

The proposed $2.5 billion merger between Live Nation, the world's largest concert promoter, and ticket-selling behemoth Ticketmaster would create the most powerful company in the music business — so big that Bruce Springsteen, New York Sen. Chuck Schumer, New Jersey's attorney general and numerous concert-industry executives have rushed to denounce the alliance. "Competition is good for the free market, and monopolies aren't," says R.E.M. manager Bertis Downs.

But Ticketmaster CEO Irving Azoff, who would be executive chairman of Live Nation Entertainment Inc. (as the combined company would be called), sees the merger as a way of fixing a concert business he says is "broken." Azoff imagines the new company will take a broad role in artists' careers. He envisions more flexible ticket prices and lower service fees; an online store in which T-shirts and downloads are bundled with tickets; and beefed-up revenues from VIP packages and from reselling tickets via its TicketsNow site. He says ticket prices could be lower overall, because the new operation could bring in more corporate sponsors. "There's going to be an incredible credibility to go to American Express or Coca-Cola and say, 'Invest the money in this process with this artist.' "

Announced February 10th, the merged company would unite Live Nation, which controls more than 140 venues, with Ticketmaster, which sold more than 141 million tickets in 2007. But that's not all the united firm would control: Ticketmaster purchased Azoff's Front Line Management last fall (and installed Azoff as CEO), gaining a roster of some 200 top touring acts, including the Eagles, Christina Aguilera and Guns n' Roses. And Live Nation spent the past two years signing multimillion-dollar deals with Madonna, Jay-Z, Shakira and others, covering recording, touring, merchandise and other revenue streams — although some in the industry claim that Live Nation has overpaid for talent.