Published at 11:50 AM on February 4, 2009

Ticketmaster, Live Nation merger in the works

Ticketmaster, Live Nation merger in the works

A big change is in works for the music industry. According to an article published in today's Wall Street Journal, Tickermaster Inc. and Live Nation Inc. are in talks to merge the two entertainment behemoths.

The merger between the world's largest concert promoter and the world's leading ticketing and artist-management company would form a new company called Live Nation Ticketmaster. The company would have close ties to more than 200 artists, including The Eagles, Miley Cyrus, Jay-Z and Madonna. According to the WSJ, "the resulting firm would be able to manage everything from recorded music to ticket sales and tour sponsorship."

This comes at a difficult time for the music industry. With record sales continually sinking and no quick way to resolve it, artists, promoters and managers are forced to look elsewhere to increase revenues; concerts and corporate sponsorships is one avenue. With the merger, the companies will be able to combine their forces to create a entertainment conglomerate and package artists in novel ways. The WSJ gives the example of a cell-phone provider sponsoring a concert tour and selling an exclusive download of a song.

This news may signify the dawn of a new age for top players in the music industry, but what does this mean for the fans? The WSJ writes that the merger would give a mega-boost to the companies' power over the industry, allowing them to overpower competing concert promoters and dictate ticket prices.

No deal has been stuck quite yet, however, as the merger between the two big-name businesses would require a review by antitrust authorities. News could be announced as early as next week, anonymous inside sources say.

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