Why Live Nation Plunged Over 11% This Week
Shares of Ticketmaster parent company Live Nation Entertainment (NYSE: LYV) plunged this week, falling 11.2% through Friday trading at noon ET, according to data from S&P Global Market Intelligence.
Live Nation merged with Ticketmaster in 2010, creating a dominant ticketing company for the highest-profile concerts. However, this week The Wall Street Journal reported the Department of Justice is preparing to sue Live Nation for alleged antitrust violations.
Currently, Ticketmaster has about 80% market share for primary ticket sales at the biggest venues in the country, and has exclusive contracts with many of the biggest stadiums. Although the DOJ didn't seek to block the initial 2010 merger under the Obama administration, the Biden administration has taken a tougher stance on corporate monopoly power. Some bad publicity for Live Nation in recent years hasn't exactly helped the company's cause, either.
Source Fool.com
