Live Nation, Ticketmaster deal gets conditional OK

WASHINGTON/NEW YORK (Reuters) - Ticketing giant Ticketmaster Entertainment and concert promoter Live Nation won U.S. approval on Monday to combine on condition they sell a ticketing unit and license ticketing software to a rival concert promoter.

Antitrust enforcers at the U.S. Justice Department cleared the merger after negotiating conditions aimed at soothing concerns that the two companies would dominate the market for ticketing major concerts and other events.

Ticketmaster would be required to license its primary ticketing software to Anschutz Entertainment group, the second-largest concert promoter and operator of major venues, and give it the option to buy the software within five years.

Additionally, Ticketmaster will also have to sell its Paciolan Inc ticketing unit. It already has a letter of intent from Comcast Spectacor, a sports and entertainment company.

Paciolan could be sold to another buyer the Justice Department finds suitable, the agency said.

"The proposed settlement allows for strong competitors to Ticketmaster, allowing concert venues to have more and better choices for their ticketing needs, and provides for anti-retaliation provisions, which will keep the merged company in check," said Christine Varney, head of the Justice Department's Antitrust Division.

Ticketmaster sells more than 140 million tickets a year and also owns Front Line Management, the leading artist management firm founded by Ticketmaster chief executive officer Irving Azoff. Its roster of 200-plus artists includes The Eagles and Miley Cyrus.

Live Nation owns major venues like the Gibson Amphitheatre in Los Angeles and the House of Blues chain, and has long-term contracts with top artists like Madonna, U2, Jay-Z and Nickelback.

Although a relatively small combination in U.S. business terms, the deal has attracted criticism from artists, fans and politicians since it was announced. Some view it as a test case for the Obama administration's pledge to get tough on mergers.

Shares of the two companies soared after the news. Live Nation stock jumped 15.3 percent to $10.56, up $1.40 on the New York Stock Exchange. Ticketmaster shares climbed 16.6 percent, or $2.21, to $15.51 on Nasdaq.

(Reporting by Jeremy Pelofsky and Dan Margolies in Washington, Yinka Adegoke in New York; Editing by Tim Dobbyn)