A Manhattan federal jury on Wednesday found Live Nation Entertainment Inc. (NYSE:LYV) and its subsidiary Ticketmaster maintained a harmful monopoly over major concert venues in the U.S.
The verdict delivered a significant defeat for the live entertainment giant and could cost the companies hundreds of millions of dollars.
- LYV stock is moving. See the chart and price action here.
The jury determined Ticketmaster overcharged consumers by $1.72 per ticket across 22 states, and additional penalties and court-ordered divestitures of venues — including amphitheaters — remain possible.
The judge directed both sides to propose a schedule for the remedies phase by late next week, according to the Associated Press.
In the lawsuit, states alleged that Live Nation leveraged its sprawling empire of venue ownership, booking operations and ticketing dominance to suppress competition, including by blocking venues from using rival ticket sellers.
Attorney Jeffrey Kessler called the company a “monopolistic bully” that inflated prices for consumers. According to trial evidence, Ticketmaster controls 86% of the concert ticketing market and 73% when sports events are included.
Live Nation countered that its market position reflected excellence, not anticompetitive conduct, and that artists and venues set their own prices.
“Success is not against the antitrust laws,” defense attorney David Marriott argued, per the AP.
The trial surfaced damaging internal communications from a Live Nation executive who called customers “so stupid” and boasted about “robbing them blind.”
The case originated under the Biden administration’s Justice Department. While the Trump administration settled federal claims earlier during the trial — without requiring a Live Nation-Ticketmaster breakup — the majority of states rejected that deal as insufficient and pressed forward to the verdict.
Markets React
Live Nation shares fell more than 6% following the verdict, but remain 9% higher on the year so far.
Competitors Vivid Seats (NASDAQ:SEAT) and StubHub Holdings (NYSE:STUB) saw their stocks climb on Wednesday and could stand to benefit if the court decides on a forced opening of Ticketmaster’s exclusive venue contract.
LYV Price Action: According to Benzinga Pro data, Live Nation shares ended Wednesday's session down 6.29% at $155.82.
Photo: sf_freelance / Shutterstock
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