LYV - Live Nation Entertainment: DOJ Sues For A Ticketmaster Breakup (Rating Downgrade)

2024-05-23 13:49:29 ET

Summary

• The Department Of Justice has filed a lawsuit to break up Live Nation Entertainment and Ticketmaster, which controls 80% of major concert venues.
• The Justice Department is seeking to break up Live Nation due to concerns about anti-competitive behavior.
• The implications of the lawsuit are significant and the bear scenario has a high probability of happening.
• Live Nation still trades at a high premium, despite a long list of red flags.

Live Nation Entertainment ( LYV ) controls roughly 80% of major concert venues. This would have made for a great investment thesis if only it weren't the foundation of what is now an official lawsuit from the DOJ to break up Ticketmaster and the rest of the business.

The implications of the lawsuit are big, and unlike many other DOJ cases, I believe the bear scenario has a high probability of materializing....

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