Ticketmaster Gets $1bn Writedown, But Live Nation Merger Looking Healthy

Ticketmaster, the maddening medium that stands between you and a good time, has happily had to write down its value massively after quarter-four earnings came in. They got slapped with a $1bn impairment charge after their stock price fell – guys, just think of it as a massive booking fee! They’ve also subsequently had their credit rating downgraded from BB+ to BB.

Despite running a company that seems hardwired to annoy your zest for musical expression out of you,  and turn your evening into a Brazil-like bureaucratic puzzle, chairman Barry Diller whined that: “The better we sell tickets, the more unpopular we become”. Look, until you stop being a talentless middleman taking ridiculous commissions on bank transactions, or at least find a very good way of hiding it, then you’ll be somewhere between traffic wardens and cowboy builders in the popular imagination.

TIcketmaster’s most recent dick move was redirecting Bruce Springsteen fans to its sister re-selling site where ticket prices were higher, rather than selling them at the advertised price – they ended up getting fined $350,000 by the state of New Jersey. They also confused this Fall Out Boy fan into spending nearly $1500 on tickets with their redirection tactics. Boss fans also got stung by the Ticketmaster telephone service that told them they weren’t selling tickets, before hanging up, before said Boss fans smashed their phones in rage at being held impotent hostage by a company dealing in perforated card.

But things are set to get potentially worse with Ticketmaster potentially getting bought out by the promoters Live Nation. Both companies have recently got into the “artist management” business, so there’s potential for some kind of vast musical empire charging you commission every time you simply lay eyes on the Jonas Brothers. Unsurprisingly, antitrust hearings were launched, but now it’s being suggested that the $2.5bn deal actually has a good chance of being approved. Trent Reznor will be pissed, though Billy Corgan will be chuffed.

To give you an idea of Live Nation’s operation runs, they’ll charge you $6 to park your car at one of their venues. And $6 for each person you’re carrying along with you. So if you’ve rocked up in a party bus with 8 other chums, expect to pay $54 in parking. Welcome to the future of entertainment.

Posted by Ben Beaumont-Thomas in Hot Money | March 26, 2009 11:44AM |