Live Nation, Justice Department to announce a settlement over ticketing practices, a source says

Michael Rapino, CEO, Live Nation

Scott Mlyn | CNBC

Live Nation and the Justice Department will announce a settlement over ticketing practices, a source close to the situation told CNBC on Thursday.

Shares of Live Nation jumped 9% on the news.

The DOJ has been investigating Live Nation for allegedly pressuring concert venues to use Ticketmaster, the Wall Street Journal reported last week, citing people familiar with the matter. The DOJ believes the company's actions violate its 2010 merger agreement with Ticketmaster, sources told the Journal, in which the companies agreed not to retaliate against venues that chose another ticketing or promotional service.

Live Nation will extend the terms of the consent decree, or merger settlement, an additional five and a half years through December 2025, according to the source. It was meant to expire in July of 2020.

The consent decree was originally established when Live Nation, an events promoter and venue operator, and Ticketmaster reached a merger deal with the DOJ in 2010, the Journal reported last week. The settlement forbids Live Nation from forcing venues that book their shows to use Ticketmaster and from retaliating against a venue if that venue chooses to use another ticketing service, the Journal said.

With the extension, Live Nation will adopt some clarifications, confirming there will be no conditions in which Live Nation will threaten to retaliate against venues which don't sign up Ticketmaster, the source said.

There will also be no material fine, the source said, but Live Nation will cover the DOJ's attorney costs. That figure is expected to be in the low millions.

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