Live Nation Stocks Dive As Department of Justice Plans Legal Action Against Mega-Promoter

Directly after news broke of the Department of Justice‘s plans to take legal action against Live Nation, the company’s stock dropped significantly.

On December, 13, Live Nation shares closed at $64.34, down 7.3% or $5.09. At the time of this writing they’re down to $63.56.

Even so, Live Nation shares have increased approximately 30.6% this year.

Live Nation, allegedly, has unfairly pressured venues to sell through Ticketmaster, its fully owned subsidiary company. Assistant Attorney General Makan Delrahim, the Justice Department’s antitrust chief, confirmed during a Senate hearing that the department was investigating these claims.

However, Live Nation Chief Executive Michael Rapino stood by the company’s practices — “We have no fear that we have any systematic issues. We’re very compliant.”

 

Source: Billboard