Concert promoter Live Nation is preparing to go from being Ticketmaster's biggest partner to its biggest rival, and it just scored a big coup; a deal that will jump start LiveNation's ticket business.
This news sent LYV stock soaring today, while TKTMstock plummeted.
Live Nation signed a deal with SMG, one of the country's largest venue operators, which manages 200 venues including Chicago's Soldier Field and the Los Angeles Forum. Over the course of the five-year deal which starts in late 2009, Live Nation will sell an estimated 25 million to 30 million SMG tickets, which is expected to generate up to $60 million dollars in ticketing fees.
This is Live Nation's first big venue contract-- giving it access to its first bunch of tickets beyond its own. Right now Live Nation is Ticketmaster's largest partner, and under contract with the ticket behemoth until January. Live Nation currently generates 17 percent of Ticketmaster's revenue, $1.24 billion last year. Revenue that will be building Live Nation's new business come 2009.