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SEC Filing Puts A Price Tag On LNE's Merger Concessions

LOS ANGELES (CelebrityAccess MediaWire) — The concessions imposed by the Department of Justice cost Live Nation approximately $118 million, according to SEC filings by the promoter.

The pro-forma financial statement, filed as if both Live Nation and Ticketmaster had operated as a single entity in 2009, revealed that Ticketmaster subsidiary Paciolan, which DoJ required to be spun-off to Comcast-Spectacor in order to complete the merger, notched up a $40.8 million loss in annual revenue for Live Nation Entertainment.

The filing also calculated necessary changes to Live Nation Entertainment's contractual agreements with AEG Live as a $77.6 million loss in annual revenue to reflect DoJ requirements that Ticketmaster Entertainment license its ticketing technology to AEG, which is expected to replace existing contractual ticketing service arrangements.

The filing also revealed that Live Nation Entertainment estimates the fair value of their current artist relationships at approximately $173 million, and their existing venue and promoter contracts to be valued at $84.2 million.

Pro-forma financial statements are typically prepared to represent the expected result of a merger or acquisition. The pro-forma statement attempts to model the results of a transaction with a particular focus on projected cash flows and major liabilities. – CelebrityAccess Staff Writers