The Biz: Live Nation Settles With Shareholders; StubHub IPOs; UK Watchdog Pushes Ticketmaster Changes; Napster Sells For $207M

Live Nation Agrees To Pay $20M In Shareholder Suit Settlement

Live Nation has agreed to pay shareholders $20 million as part of a settlement of a class action suit alleging the company misled shareholders about regulatory exposure and the potential for antitrust action by the government.

A group of investors filed the suit in the U.S. District Court for the Central District of California in August 2023, months before the Department of Justice filed the suit that seeks to bust up the merger between Live Nation and Ticketmaster.

“Live Nation engaged in anticompetitive conduct, which was the true source of its business growth, including improperly tying its underpriced concert promotion services to its Ticketmaster services, retaliating against venues that spurned Ticketmaster, and restricting consumers’ ability to resell tickets using competing secondary ticketing services,” the shareholders’ lawyers wrote in their complaint. “Live Nation was not cooperating with investigations by the US Department of Justice and a Senate subcommittee; and as a result, Live Nation was likely to incur regulatory scrutiny and face fines, penalties, and reputational harm.”

The suit cited share price declines that followed reports in the New York Times, Politico, NPR and CNBC that Live Nation was under a microscope from both the executive and legislative branches.

In their original filing, the plaintiffs sought some $743 million; in the filing announcing the settlement March 21, the shareholders’ attorneys said the $20 million is “reasonable and warrants preliminary approval.”

As for the antitrust suit, an amended case management order issued by U.S. District Judge Arun Subramanian Monday reiterated an anticipated start date of March 2, 2026.

StubHub Files For IPO, Claims 30% Revenue Growth

Ticket resale marketplace StubHub officially filed for its initial public offering in New York March 21.

In the filing with the Securities and Exchange Commission, the company revealed 29.5% year-over-year revenue growth. Nevertheless, it reported a net loss on the bottom line of $2.4 million.

The New York Times reports that StubHub seeks to raise as much as $1 billion from its stock offering.

UK Regulator Tells Ticketmaster To Make Changes Following Oasis Investigation

The Competition and Markets Authority — the body that enforces competition law and investigates unfair business practices in the UK — told Ticketmaster to make substantial changes in the way it labels tickets and ticket prices.

The directive comes after an investigation prompted by the onsale of Oasis’ reunion dates, which sparked outrage on High Streets and in the Palace of Westminster.

The CMA was particularly concerned by Ticketmaster labeling certain seats as “platinum” and selling them for as much as 2.5 times than similar seats despite the platinum seats being located in many of the same areas as standard seats and offering no “additional benefits.” The regulator also said Ticketmaster did not disclose that there were two categories of standing tickets with the cheaper tickets sold before the more expensive ones were released.

This resulted in “many fans waiting in a lengthy queue without understanding what they would be paying and then having to decide whether to pay a higher price than they expected,” the CMA wrote.

The CMA, however, did say it found no evidence that Ticketmaster used algorithmic dynamic pricing for Oasis, despite widespread claims the practice was employed (which was denied by Ticketmaster and the Gallagher Brothers from the beginning).

“At Ticketmaster, we strive to provide the best ticketing platform through a simple, transparent and consumer-friendly experience,” a spokesperson told the BBC.

“We welcome the CMA’s input in helping make the industry even better for fans.”

Tech Startup Pays $207M For Napster, Plans ‘Immersive’ Streaming

Napster, the revolutionary file-sharing service that upended the music industry a quarter century ago, has been sold to tech-startup Infinite Reality for $207 million.

Infinite Reality, which has a focus on immersive technology, plans “branded 3D virtual spaces” where it says “fans can enjoy virtual concerts, social listening parties, and other immersive and community-based experiences, sell both physical and virtual merchandise, exclusive digital content, and event tickets”.

“By acquiring Napster, we’re paving a path to a brighter future for artists, fans, and the music industry at large,” said John Acunto, Co-Founder and CEO of Infinite Reality.

“This strategic move aligns with Infinite Reality’s vision to lead an internet industry shift from a flat 2D clickable web to a 3D conversational one – giving all creators modern tools to better engage, monetize, and measure their audiences.”

Launched in 1999, Napster filed for bankruptcy protection in 2002 and was acquired by Roxio. Big-box retailer Best Buy paid $121 million for Napster in 2008. It merged with Rhapsody in 2011 and sold to British virtual reality company MelodyVR for $71 million in 2021. In 2022, Napster sold again, this time to Hivemind and Alogrand.