LYV - Low odds that Justice Dept. breaks up Live Nation Ticketmaster - analyst

2023-07-31 10:57:05 ET

There are low odds that the Justice Department successfully pursues and breaks up Live Nation ( NYSE: LYV ) and its Ticketmaster unit, according to an Oppenheimer analyst.

The note comes after Live Nation ( LYV ) fell 8% on Friday after a Politco report that the DOJ may pursue an antitrust lawsuit against the concert promoter and ticker seller as soon as this fall. The suit may claim that Live Nation is abusing its power over the live music industry.

"We believe the odds are low that the DOJ successfully pursues and breaks up Live Nation and Ticket Master," Oppenheimer analyst Jed Kelly, who has an outperform rating and a $115 price target on Live Nation ( LYV ), wrote in a note on Monday.

Kelly said the fact that Live Nation ( LYV ) extended its consent decree with the DOJ until 2025 and is actively monitored both internally and externally argues against a potential antitrust case. He also highlighted that LYV is No. 3 in the U.S. secondary ticketing market share and has had less share since acquiring Ticketmaster.

"Any overture of the Consent Decree by the DOJ would be unprecedented, and likely cause more hesitation from other companies signing future ones," Kelly wrote.

Kelly added that more competitors are also emerging for primary ticketing contracts, especially SeatGeek.

More on Live Nation

• Live Nation Entertainment GAAP EPS of $1.02 beats by $0.40, revenue of $5.63B beats by $680M
• Live Nation Entertainment: Explaining Its 7.1% FCF Yield And Why There's No Upside
• Live Nation Still Has Room To Run
• Live Nation Entertainment: Wait Until DoJ's Investigation Is Over

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