February 10, 2009 15:44

Ticketmaster and Live Nation to merge

News comes as Ticketmaster is sued for $500 million over ticketing bungle

Two of the world's biggest music businesses, Ticketmaster and Live Nation, are reportedly set to announce they have signed a merger.

If confirmed, the deal would create one of the most powerful groups in the music industry, taking in venue ownership, ticketing and artist management. The two companies would act under the name Live Nation Entertainment.

Politicians and artists have voiced opposition against the move, with Bruce Springsteen saying a merger would create "a near monopoly situation in music ticketing".

If the merger is approved, the joint company would be valued at $2.5 billion, reports eFlux.com.

The news comes one day after it was announced that Ticketmaster is being sued for $500 million by two law firms over allegedly redirecting customers from its website to another site selling tickets at inflated prices.

As NME.COM previously reported, fans trying to buy tickets to see Bruce Springsteen through Ticketmaster were recently redirected from the site to TicketsNow.com, which charged hundreds of dollars more for tickets - despite face value tickets still being available.

Two Canadian law firms, Sutts, Strosberg in Toronto and Branch McMaster in Vancouver, have now filed lawsuits against Ticketmaster, citing complaints from clients who had tried in vain to purchase face value tickets from the Ticketmaster website.