Case Analysis : ' The House Of Blues '

1502 Words Apr 29th, 2016 7 Pages
1. What was Live Nation? What was Ticketmaster? (Include information business dealings, history and CEOs.)
Live Nation was the largest concert promoter in the United States whose CEO was Michael Rapino. It was a spinoff of Clear Channel Communications in 2005. The House of Blues locations came under Live Nation ownership in 2006. This greatly increased the number of its venues. Some statistics about Live Nation from before the merger include it owning 75 domestic venues and 42 international venues, it had 22,000 events every year, it was in charge of the Super Bowl halftime show, and over 50 million people attended its events ever year. Live Nation also had deals with specific artists for promotional and branding rights and some live performance guarantees.
Ticketmaster was the largest ticketing agency in the country. Irving Azoff was the CEO. Ticketmaster not only sold concert tickets, but also sporting and other live entertainment event tickets. These events totaled to them controlling 83% of ticketing. Before the merger with Live Nation was even thought of Ticketmaster had absorbed seven of its rivals. In 2008 it became a publicly traded company after it spun off of its former partner IAC. Later that year they also bought Front Line Management and Paciolan Incorporated.
Live Nation actually had a contract with Ticketmaster prior to their merger. Ticketmaster sold the tickets for Live Nation events. They accounted for 17% of Ticketmaster’s business (Smith). However, in…
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