LOS ANGELES (CelebrityAccess) — The Department of Justice has shed new light on Endeavor Chief Ari Emanual’s surprise decision earlier this month to resign from his position on Live Nation’s Board of Directors.
According to a statement from the DOJ, both Emanual, who serves as Chief Executive Officer of Endeavor Group Holdings, and Endeavor President Mark Shapiro, resigned from Live Nation’s Board of anti-trust concerns.
The DOJ said it was concerned that as Endeavor and Live Nation are frequent counterparties, the presence of Emanuel and Shapiro on the promoter-giant’s Board may have created an illegal interlocking directorate.
Section 8 of the Clayton Act prohibits the same person or company from serving as an officer or director of two competing companies, except under certain defined safe harbors, the DOJ said.
“These resignations ensure that Endeavor and Live Nation will compete independently,” said Acting Assistant Attorney General Richard A. Powers of the Justice Department’s Antitrust Division. “Executives are not permitted to hold board positions on companies that compete with each other. The division will enforce the antitrust laws to make sure that all companies compete on the merits.”
Shapiro joined Live Nation’s Board in 2008, while Emanual joined in 2007. Emanuel was up for re-election this year, but Live Nation announced his resignation earlier this month, just a week before the company’s annual shareholder meeting.
At the time, Live Nation did not provide a reason for his resignation but noted that the split was amicable.
“Since joining the Board in 2007, Ari’s input and insights have played a beneficial role as we’ve fostered years of growth at Live Nation,” Live Nation said. “We are deeply appreciative of his contributions to the company and wish him the best of luck in all he does moving forward.”