Ticketmaster/Live Nation merger: Ticketmaster shareholders sue to block the proposed deal

It appears that not only ticket and entertainment industry insiders are among the ones questioning the planned merger of Live Nation and Ticketmaster.

A group of Ticketmaster Entertainment shareholders have filed a class action lawsuit against the company claiming that the deal allegedly undervalued Ticketmaster. The planned merger calls for Live Nation to issue 1.384 shares of its stock for every share of Ticketmaster stock under what is valued as a $2.5 billion deal.

According to the Los Angeles Business Journal, the lawsuit was filed late last week in Los Angeles Superior Court and calls on a judge to stop the planned merger, which is in the midst of federal regulatory review.

Among the reported claims the lawsuit makes includes a belief that Ticketmaster executives purposely exploited the company’s low stock price in making the deal, and that some company executives allegedly made side deals for their own benefit outside of the merger agreement. These alleged separate benefits may have come at the detriment of shareholders, according to the Los Angeles Business Journal.

Ticketmaster did not return a message seeking comment. News of the lawsuit comes just a few days after Live Nation’s largest shareholder announced he may oppose the deal if Ticketmaster Chairman Barry Diller does not take a lesser role in the newly merged company, to be called Live Nation Entertainment.

Since Ticketmaster stock began trading publicly last summer under the symbol TKTM, shareholders have watched the stock price plummet from a high of $27 per share to $4.52 as of about 11:45 am today, February 17. Live Nation stock, which trades under the symbol LYV, has also dropped significantly in value in the past year and was trading at $3.49 this morning. See tickers below.

 

 

More TicketMaster/LiveNation merger news

Ticketmaster/Live Nation merger: Canadian officials look at TicketsNow	03/09/2009
Ticketmaster/Live Nation merger: NATB schedules meeting about the deal	03/04/2009
Ticketmaster/Live Nation merger: Live Nation reports 4Q loss	03/03/2009
Ticketmaster/Live Nation merger: Canadian AG investigates Ticketmaster	03/02/2009
Ticketmaster/Live Nation merger: National Association of Ticket Brokers irate	02/27/2009
Ticketmaster/Live Nation merger: Azoff would consider selling TicketsNow	02/26/2009
Ticketmaster/Live Nation merger: Azoff, Rapino and new speakers for House hearing	02/25/2009
Ticketmaster/Live Nation merger: Trouble with Leonard Cohen tickets on TicketsNow, and a third class action lawsuit	02/25/2009
Ticketmaster/Live Nation merger: Companies grilled by skeptical Senators	02/24/2009
Ticketmaster/Live Nation merger: Senate hearing to be webcast	02/24/2009
Ticketmaster/Live Nation merger: New Jersey AG settles investigation with Ticketmaster over Bruce Springsteen tickets	02/23/2009
Ticketmaster/Live Nation merger: Shareholder lawsuit details deal’s undervaluation	02/20/2009
Ticketmaster/Live Nation merger: Azoff, Rapino to testify at Senate hearing	02/20/2009
Ticketmaster/Live Nation merger: Dates set for congressional hearings	02/18/2009
Ticketmaster/Live Nation merger: Ticketmaster shareholders sue to block the proposed deal	02/17/2009
Ticketmaster/Live Nation merger: Law firm launches investigation into TicketsNow	02/16/2009
Ticketmaster/Live Nation merger: Live Nation expects strong 4th Quarter	02/13/2009
Ticketmaster/Live Nation merger: major shareholder may oppose the deal	02/13/2009
Ticketmaster faces second class action lawsuit in Canada	02/12/2009
Ticketmaster/Live Nation merger: stocks take a beating	02/12/2009
Visa fires back at Ticketmaster for ‘glitch’ statement	02/11/2009
U.S. Justice Department launches review of Live Nation, Ticketmaster merger	02/11/2009
LiveStub CEO Michael Hershfield discusses the Live Nation/Ticketmaster merger	02/11/2009
Ticketmaster and Live Nation claim now was the best time to merge	02/10/2009
Live Nation and Ticketmaster Entertainment agree to unprecedented merger	02/10/2009
Ticketmaster, Live Nation merger expected within a day	02/09/2009
Ticketmaster, TicketsNow face $500 million class action suit in Canada	02/09/2009
Connecticut AG wants review of proposed Ticketmaster, Live Nation merger	02/06/2009
Opposition mounts against proposed merger of Ticketmaster and Live Nation	02/05/2009
Ticketmaster apologizes to Bruce Springsteen and his fans over ticket mix-up	02/05/2009
Bruce Springsteen rips Ticketmaster over tickets and proposed Live Nation merger	02/04/2009
TicketNetwork CEO Don Vaccaro speaks with Fox Business about Live Nation/Ticketmaster merger	02/04/2009
Live Nation and Ticketmaster Entertainment talk merger	02/04/2009