Who's In, Who's Out: Live Nation Merger
Public Strategies and Live Nation have parted ways as the Justice Department continues probing the music giant's pending $2.5 billion all-stock merger with Ticketmaster. Live Nation, which spun off from media conglomerate Clear Channel Communications in 2005, hired Public Strategies and Brunswick Group to manage its image during the merger process and has worked with attorneys at Latham & Watkins, CongressDaily reported earlier this year (subscription required).
Public Strategies spent $270,000 advocating for Live Nation in the first quarter of 2009 and $30,000 in the second quarter, according to lobbyists' filings. The firm also registered to represent Ticketmaster in April and racked up $30,000 in the second quarter. Additionally, Gibson Dunn & Crutcher spent $60,000 in the second quarter lobbying for Ticketmaster. In March, Akin Gump registered to represent Live Nation. The firm spent $80,000 in the first quarter and $30,000 in the second quarter on that work.
In related news, former Recording Artists' Coalition national director Rebecca Greenberg registered to lobby last month on behalf of Ticketmaster. Greenberg joined Irving Azoff's team at Ticketmaster when the coalition founded by Don Henley of The Eagles was folded into the Recording Academy in January. Azoff served as a RAC board member and is a longtime manager for Henley and his band.
The merger has gotten significant attention from Congress. Senate Judiciary Antitrust Subcommittee Chairman Herb Kohl, D-Wis.; Sen. Orrin Hatch, R-Utah; House Judiciary Chairman John Conyers and ranking member Lamar Smith are among those who have sought information through letters and hearings. Rep. Bill Pascrell, D-N.J., one of the first on the Hill to criticize the pairing, issued a statement last week lauding a preliminary ruling against the merger by regulators in the United Kingdom.
"The British authorities came to the conclusion that to let these two companies join together would quell competition in the primary ticket sales marketplace and lead to higher ticket prices for consumers," Pascrell said in a statement. "Ticketmaster and Live Nation have much larger shares of the market on this side of the Atlantic. Therefore, [DOJ] would have even more reason to prevent the merger of these two companies." A Justice Department spokeswoman said the agency's investigation is ongoing but could not comment further.
[Updated 4:08 p.m.] Live Nation and Ticketmaster issued a statement saying the firms are committed to the merger because challenges to the music industry are immense and live performances are the economic engine for the industry. "We believe this merger will build a more efficient and effective company moving forward," they said.
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