Live Nation has reached a settlement with the Department of Justice that extends a consent decree it agreed to as part of the 2010 merger with Ticketmaster through 2025, according to a statement published on the entertainment giant’s website Thursday afternoon.
“We have reached an agreement in principle with the Department of Justice to extend and clarify the consent decree,” the statement reads. “We believe this is the best outcome for our business, clients and shareholders as we turn our focus to 2020 initiatives.”
The company’s stock jumped after the news got out, leaping by $5 in minutes, effectively erasing the precipitous drop it saw last week when the DOJ’s investigation into the company’s compliance with the consent decree was announced.
Billboard is reporting that the changes are “mostly clarification over disagreements between the company and assistant attorney general Makan Delrahim, who had identified five violations of the decree” since it was signed a decade ago.
“As part of the settlement, the Live Nation’s ban on threatening to retaliate against venues has been tightened and Ticketmaster sales representatives are not allowed to discuss content bundle deals with venues or detail how Ticketmaster facilities get preference for shows. Live Nation will still be allowed to give Ticketmaster venues priority over other venues, but can’t punish clients that don’t renew their deals.”
It is unclear from the early reporting on this deal whether or not Live Nation’s rumored interest in the purchase of former executive Nathan Hubbard’s company or Ticketmaster’s attempts at monopolizing the secondary ticketing industry through mobile transfer technology will be addressed in any way as part of the new iteration and extension of Live Nation’s consent decree. Both were rumored to be among the reasons for the DOJ’s decision to pursue legal action against Live Nation last week, in addition to the five violations of the consent decree alleged.
