Live Nation Entertainment (NYSE:LYV) is expected to be hit with an antitrust lawsuit from the U.S. Department of Justice (DOJ) next month, the Wall Street Journal reported. The DOJ is set to claim that Live Nation leveraged its dominant position to stifle competition in the live event ticketing market. As a result, LYV stock was down 8.3% in after-hours trading yesterday.
Live Nation is an entertainment company that operates and manages ticket sales for live events globally.
Background
In 2010, Live Nation merged with Ticketmaster, creating a massive entertainment entity responsible for ticket services, concert promotion, and venue ownership. However, the combined company faced a lot of criticism for high fees, poor customer service, and potential anti-competitive practices. As a result, the companies pledged to operate independently.
The Justice Department began its investigation in 2022. Interestingly, the probe gained momentum only after Ticketmaster’s website crashed due to strong demand from fans trying to purchase tickets for Taylor Swift’s “Eras Tour” concert. This incident fueled concerns about the company’s dominance in the ticketing industry.
What Is the Price Target for LYV?
On TipRanks, Live Nation has a Strong Buy consensus rating based on 14 unanimous Buy ratings assigned in the past three months. After a 16.6% surge in its share price over the past six months, the analysts’ average price target on LYV stock of $120.77 per share implies a 21.05% upside potential.
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