After the boards of Ticketmaster Entertainment Inc. and Live Nation Inc. approved a deal to merge, the world’s most important concert promoter is planning to buy Ticketmaster for approximately $400 million in stock, in an attempt to set up a company with leading holdings in both concert promotion and ticket sales.

 

Nevertheless, shares of both companies fell on Tuesday, in the midst of alarm with regard to the fact that the purchase might be hindered by U.S. antitrust regulators under the Obama administration. U.S. Senator Charles Schumer criticized the agreement even before the official announcement came, explaining that the merger would offer the unit “unrivaled power over concert-goers and the prices they pay to see their favorite artists and bands.”

 

The merged group, Live Nation Entertainment, would own over 140 concert venues worldwide that put on the market about 140 million tickets a year and host 22,000 concerts annually.

 

In addition, the company would also run a client list of more than 200 famous acts, including Madonna, Jay-Z, the Eagles and Miley Cyrus, as Ticketmaster acquired Front Line Management Inc. last year and Live Nation did its best in order to sign on big names.

 

Ticketmaster shareholders are due to receive 1.384 shares of Live Nation common stock for each share of Ticketmaster, the two units explained in a joint statement. While Live Nation will own 49.99 percent of the merged company, Ticketmaster will hold 50.01 percent. Moreover, Live Nation Chief Executive Michael Rapino will serve as CEO of the new company and Ticketmaster CEO Irving Azoff will be the executive chairman of the group.