Instructor's note: submitted Feb 13
Associated Press
Metro Newspaper
Wednesday, February 11, 2009
Concert promoter Live Nation and Ticketmaster Entertainment have proposed to join forces to become Live Nation Entertainment. This deal will allow Ticketmaster shareholders to receive 1.384 shares of Live Nation stock for each share of Ticketmaster they hold. This deal will help them save about $40 million annually, with the company’s estimated value of about $2.5 billion.
However, due to the fact that both companies have a huge ego, their deal could be delayed by an antitrust review. Both companies play dominant roles in the entertainment business, and competition could lead to an industry monopoly.
This article was rather interesting, due to the fact that it talked about something new and interesting. The article gave good information about what was going on between the two companies, and what could happen if the companies decided to merge as one or compete as two. I liked how the article started off explaining what was going on and then made everything more clearly as you read. The only follow-up story I could really think of is if the companies join together or not.
By Omar L.
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