Live Nation (NYSE:LYV) saw its stock drop approximately 7% early Tuesday following reports from the Wall Street Journal indicating that the Department of Justice is gearing up to file an antitrust lawsuit against the company as soon as next month.
The DOJ alleges that Live Nation, the parent company of Ticketmaster, has exploited its dominance in the market to stifle competition.
While the federal government greenlit the Live Nation-Ticketmaster merger in 2010, the company has since been under scrutiny for its exorbitant ticket fees and accusations of monopolistic behavior.
In response to concerns, the DOJ updated Live Nation’s consent decree in 2020, extending it until 2025 due to evidence of repeated violations.
Capitol Hill has also intensified its scrutiny of Live Nation, particularly after a 2022 controversy involving Taylor Swift concert tickets.
Despite calls from senators to break up the company, analysts argue that such a move might not resolve issues with the secondary ticket market.
Live Nation’s latest earnings report revealed a 36% surge in revenue for fiscal year 2023, reaching $22.7 billion, with earnings per share more than doubling to $1.37. Concert attendance also increased by 20%.
Despite these positive financial indicators, the company’s stock has declined by about 1% since the beginning of the year. Live Nation has yet to respond to inquiries regarding the report.
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