Live Nation's Stock Slipping Following the FTC's Ticketmaster Examination

After the FTC’s resolution to look at shopper safety surrounding Ticketmaster’s collusion with scalpers, dad or mum firm Live Nation’s inventory is taking a beating.

Investors concern regulatory interference might hit Live Nation’s backside line.  Ticketmaster, wholly owned by Live Nation, is the most important reside ticketing service within the United States.

At the tip of September, an undercover investigation from the CBC and Toronto Star discovered Ticketmaster reps selling a secondary gross sales platform referred to as TradeDesk.  The service offers a manner for ticket scalpers to simply re-sell tickets that they had bought utilizing Ticketmaster’s personal service, permitting the corporate to double-dip on charges.

Reps had been recorded saying that Ticketmaster doesn’t monitor what number of accounts an individual creates on TradeDesk.  The platform was positioned as a simple approach to get round mass-selling scalped tickets.

The discovery was rumored to have instantly rattled the U.S. Department of Justice, which had beforehand opened an investigation in opposition to Ticketmaster and Live Nation.  It additionally prompted the Federal Trade Commission (FTC) to open an ‘examination’ into the patron safety points surrounding secondary ticketing.

12% of Live Nation’s (LYV) income final quarter got here from reside ticket gross sales.

LYV’s inventory has fallen from its excessive of $54.10 final week right down to $49.77 on the present time of writing. Still, the inventory is up, in comparison with its YTD value of $42.65 on January 2nd.

Investors all the time get spooked about authorities regulation, and that may have an effect on a spread of class shares.  For fast proof of that, look no additional than Eventbrite’s inventory efficiency after their current IPO.  Eventbrite owns Ticketfly, a rival reside ticketing company to Ticketmaster.  Their shares had been down about three.four% on the information of Ticketmaster catching the FTC’s eye.