LOS ANGELES (CelebrityAccess MediaWire) — Live Nation Entertainment reported that they have won an arbitration ruling that clears them of any obligation to German ticketing company CTS Eventim Ag.
On June 12th, the arbitrator ruled that Live Nation had validly terminated its ticketing software license agreement with CTS in June 2010.
Eventim brought the action against Live Nation after the promoter backed out of a ten-year deal with Eventim hat covered ticketing in the U.S., Canada and in some European countries following Live Nation's merger with Ticketmaster.
The decision clears Live Nation of a potential charge that may have cost the company as much as $210 million, according to an estimate by analysts at the investment bank Stifel Nicolaus & Co. Live Nation's stock jumped by $2.33 (16.88%) after the news of the decision was reported on Wednesday.
"We are very pleased with, but not surprised by, today's ruling. The arbitrator's final decision vindicates Live Nation's steadfast position that we justifiably terminated our contract with CTS," said Michael Rapino, president and chief executive officer of Live Nation Entertainment. – CelebrityAccess Staff Writers