Michael Rapino, CEO, Live Nation
Scott Mlyn | CNBC
Live Nation and the Justice Department will announce a settlement over ticketing practices, a source told CNBC on Thursday.
Shares of Live Nation jumped 10% on the news.
The DOJ has been investigating Live Nation for allegedly pressuring concert venues to use Ticketmaster, the Wall Street Journal reported last week, citing people familiar with the matter. The DOJ believes the company’s actions violate its 2010 merger agreement with Ticketmaster, sources told the Journal, in which the companies agreed not to retaliate against venues that chose another ticketing or promotional service.
Live Nation will extend the terms of the consent decree an additional five and a half years through December 2025, according to the source. It was meant to expire in July of 2020.
With the extension, Live Nation will adopt some clarifications, confirming there will be no conditions in which Live Nation will threaten to retaliate against venues which don’t sign up Ticketmaster, the source said.
There will also be no material fine, the source said, but Live Nation will cover the DOJ’s attorney’s costs. That figure is expected to be in the low millions.
This is breaking news. Please check back for updates.