UPDATE 2-Live Nation posts wider loss, shares steady

* Live Nation posts Q2 loss EPS 33 cts

* Q2 revenue $1.06 billion

* Misses estimates, excluding items

* Shares barely changed

(adds background, analyst)

SAN FRANCISCO, Aug 6 (Reuters) - Live Nation (LYV.N), the world's largest concert promoter, posted a wider quarterly loss on Thursday as the company offered ticket promotions to boost sales during the period.

The shares of Live Nation, which reached a deal to merge with Ticketmaster Entertainment Inc TKTM.O, held steady after closing down 0.16 percent, or 1 cent, at $6.08 on the New York Stock Exchange.

Live Nation reported a second-quarter net loss of $27.2 million, or 33 cents a share, compared with a loss of $652,000, or 1 cent a share, a year earlier.

Excluding items, Live Nation posted a loss of $12.32 million, or 15 cents a share.

On that basis, analysts on average had forecast a profit of 17 cents a share.

Revenue fell to $1.06 billion from $1.13 billion a year ago.

In a statement, chief executive officer Michael Rapino said on Thursday he believes any reduction in margin the company sacrifices due to promotions on ticket purchases will be made up for in incremental ticket sales and additional on-site spending.

The chair of a Senate antitrust subcommittee and 50 members of the U.S. House of Representatives recently said the proposed merger of Ticketmaster and Live Nation should be closely scrutinized by the Justice Department.

Sen. Herb Kohl, chair of the Judiciary Committee's antitrust subcommittee, said the merger would combine Ticketmaster, the nation's dominant ticket seller, with Live Nation, which has its own ticketing business.

The deal has been criticized by superstar Bruce Springsteen, politicians like Senator Charles Schumer, and music fans commenting in Internet chatrooms. (Editing by Carol Bishopric)