A group of Ticketmaster Entertainment shareholders have filled a class action lawsuit against the ticketing company, claiming its sale price to Live Nation was "grossly inadequate," according to the claim, which was filed last week in Los Angeles.

On Feb. 10, Live Nation and Ticketmaster Entertainment entered into a definitive agreement to create Live Nation Entertainment. The companies will be combined in a tax-free, all-stock merger of equals with a combined enterprise value of approximately $2.5 billion. Under the agreement, Ticketmaster shareholders will receive 1.384 shares of Live Nation common stock for each share of Ticketmaster they own, subject to certain adjustments defined within the agreement.

The lawsuit says that Ticketmaster's stock has lost 40% of its value over the last three months, and alleges that Ticketmaster executives exploited the downturn to secure benefits for themselves at the detriment of shareholders.

The Ticketmaster shareholders are aiming to block the proposed merger, according the suit. Meanwhile, the Senate Judiciary Committee's antitrust subcommittee will hold hearings on the potential Live Nation and Ticketmaster Entertainment merger on Feb. 24.

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