It appears that not only ticket and entertainment industry insiders are among the ones questioning the planned merger of Live Nation and Ticketmaster. A...

It appears that not only ticket and entertainment industry insiders are among the ones questioning the planned merger of Live Nation and Ticketmaster.

A group of Ticketmaster Entertainment shareholders have filed a class action lawsuit against the company claiming that the deal allegedly undervalued Ticketmaster. The planned merger calls for Live Nation to issue 1.384 shares of its stock for every share of Ticketmaster stock under what is valued as a $2.5 billion deal.

According to the Los Angeles Business Journal, the lawsuit was filed late last week in Los Angeles Superior Court and calls on a judge to stop the planned merger, which is in the midst of federal regulatory review.

Among the reported claims the lawsuit makes includes a belief that Ticketmaster executives purposely exploited the company’s low stock price in making the deal, and that some company executives allegedly made side deals for their own benefit outside of the merger agreement. These alleged separate benefits may have come at the detriment of shareholders, according to the Los Angeles Business Journal.

Ticketmaster did not return a message seeking comment. News of the lawsuit comes just a few days after Live Nation’s largest shareholder announced he may oppose the deal if Ticketmaster Chairman Barry Diller does not take a lesser role in the newly merged company, to be called Live Nation Entertainment.



Since Ticketmaster stock began trading publicly last summer under the symbol TKTM, shareholders have watched the stock price plummet from a high of $27 per share to $4.52 as of about 11:45 am today, February 17. Live Nation stock, which trades under the symbol LYV, has also dropped significantly in value in the past year and was trading at $3.49 this morning. See tickers below.

View the full tktm chart at Wikinvest

View the full lyv chart at Wikinvest

More TicketMaster/LiveNation merger news

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Ticketmaster/Live Nation merger: Canadian AG investigates Ticketmaster 03/02/2009
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Ticketmaster/Live Nation merger: Azoff, Rapino and new speakers for House hearing 02/25/2009
Ticketmaster/Live Nation merger: Trouble with Leonard Cohen tickets on TicketsNow, and a third class action lawsuit 02/25/2009
Ticketmaster/Live Nation merger: Companies grilled by skeptical Senators 02/24/2009
Ticketmaster/Live Nation merger: Senate hearing to be webcast 02/24/2009
Ticketmaster/Live Nation merger: New Jersey AG settles investigation with Ticketmaster over Bruce Springsteen tickets 02/23/2009
Ticketmaster/Live Nation merger: Shareholder lawsuit details deal’s undervaluation 02/20/2009
Ticketmaster/Live Nation merger: Azoff, Rapino to testify at Senate hearing 02/20/2009
Ticketmaster/Live Nation merger: Dates set for congressional hearings 02/18/2009
Ticketmaster/Live Nation merger: Ticketmaster shareholders sue to block the proposed deal 02/17/2009
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Ticketmaster faces second class action lawsuit in Canada 02/12/2009
Ticketmaster/Live Nation merger: stocks take a beating 02/12/2009
Visa fires back at Ticketmaster for ‘glitch’ statement 02/11/2009
U.S. Justice Department launches review of Live Nation, Ticketmaster merger 02/11/2009
LiveStub CEO Michael Hershfield discusses the Live Nation/Ticketmaster merger 02/11/2009
Ticketmaster and Live Nation claim now was the best time to merge 02/10/2009
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Bruce Springsteen rips Ticketmaster over tickets and proposed Live Nation merger 02/04/2009
TicketNetwork CEO Don Vaccaro speaks with Fox Business about Live Nation/Ticketmaster merger 02/04/2009
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By Alfred Branch Jr.