LYV - Live Nation: In-Depth Look At Overblown Regulatory Risks And Why I'm Not Worried

2024-02-09 11:47:07 ET

Summary

• LiveNation has a durable competitive advantage in the live music industry through vertical integration, scale, and exclusive operation of key venues.
• DOJ antitrust risks are overblown and unlikely to result in a breakup or significant damages.
• The company's stock currently trades at deeply discounted EV to AOI relative to historical levels, presenting a strong case for a multiple re-rating trade in a high-quality compounder.

Live Nation ( LYV ) currently finds itself in the middle of a regulatory and public opinion storm, where many customers and lawmakers have been pushing for action to be taken to reduce the strength of Live Nation and its subsidiary Ticketmaster's competitive positioning.

As we'll explore, this public sentiment seems to have taken the market's attention away from the true likeliness of damaging action from the DOJ.

In this article, we attempt to bring expectations closer to what is probable, showing how this situation presents a unique opportunity to enter a high-quality business at a historical discount....

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