Ticketmaster parent company Live Nation Entertainment’s (LYV) lawyer made a ridiculous argument to avoid a company breakup in a Department of Justice (DOJ) lawsuit. In court hearings over its alleged monopoly of the ticket-selling marketplace, the Live Nation Entertainment lawyer claimed forcing the company to work with rival ticket sellers would increase prices.
This absurd argument includes the idea that additional ticket sellers would increase prices by bidding for access to the company’s amphitheaters. U.S. District Court Judge Arun Subramanian was skeptical about this claim from the lawyer, who also argued that it’s “only a theory” customers would be in a better world where multiple ticket sellers were allowed access to Live Nation Entertainment’s locations.
One of Live Nation Entertainment’s Arguments Did Gain Traction
In the same lawsuit, the Live Nation Entertainment lawyer argued against forcing the company to allow bands to use their own promoters. The current business model requires bands to use Live Nation Entertainment’s promoters if they perform at one of its venues. In this instance, Judge Subramanian agreed with Live Nation Entertainment. She said she can’t force the company to do business with its rivals as it has the right to refuse them.
Live Nation Entertainment also seeks to remove 27 states from the lawsuit against it. It argues that they are piggybacking off a Federal lawsuit and shouldn’t be allowed to do so. It’s unclear how this will play out but final arguments and dismissals are due Monday.
-Is LYV Stock a Buy, Sell, or Hold?
Turning to Wall Street, the analysts’ consensus rating for Live Nation Entertainment is Strong Buy based on 15 Buy ratings over the last three months. With that comes an average price target of $150.43, a high of $163, and a low of $133. This represents a potential 8.24% upside for LYV shares.
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