Ticketmaster, Live Nation in merger talks

By Jui Chakravorty Das and Joe Giannone

NEW YORK (Reuters) - Ticketmaster Entertainment Inc and Live Nation Inc may unveil a merger as soon as this week, creating a music industry powerhouse with a combined market value of over $700 million, a source briefed on the talks told Reuters on Tuesday.

If the deal goes ahead, the marriage of the world's biggest concert promoter and the leading ticketing and artist-management company will create a dominant force in the industry with ties to more than 200 artists such as the Eagles, Miley Cyrus, Christina Aguilera, Madonna and Jay-Z.

A successful deal will also crown Live Nation's longstanding efforts to mold itself into a diversified conglomerate with businesses beyond concert promotion.

A source briefed on the matter told Reuters that talks are at an advanced stage, but could still fall apart over issues such as management control.

Another hurdle would be competition issues because such a merger would concentrate power in the music industry under one roof.

One senior music label source, who did not want to be identified, told Reuters the merger will "face major antitrust issues from managers, record companies, ticketing companies and concert promoters to name a few -- not to mention the Obama administration will be very tough on this stuff."

The new company would be called Live Nation Ticketmaster, the Wall Street Journal reported on Tuesday.

The paper, citing unidentified sources, said the boards of both companies had yet to approve a merger. The deal will not involve any cash transfer, said the Journal, which was first to report on the advanced talks.