Multinational entertainment giant, Live Nation (LYV.US) loses in today premarket more than 8% due to risk of antitrust lawsuit from US Department of Justice, which expects to file a lawsuit next month. The Wall Street Journal passed this information yesterday, citing people familiar with the matter. WSJ reported that the lawsuit may be connected to the company's subsidiary Ticketmaster, which was criticized for 2022 'Eras' tour of Taylor Swift and two other companies harmed consumers using their dominance of live events access (venue negotiations, ticket fees).
According to reports, Live Nation leveraged a dominance in the market to suppress competitors. Mentioned subsidiary, Ticketmaster holds 80% of the market for event sales with the largest US venues, holding exclusive contracts with multiple sport areas.Legal Information Institute of Cornell Law School indicated that violating antitrust laws can carry both criminal and civil penalties. The criminal penalties capped at 10 years of jail time and $100,000,000 per violation. Company didn't comment about market news yet. Ticketmaster spokesperson commented that the company doesn't have a monopoly and more competitors than ever.
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Current premarket Live Nation share price suggest opening at $93 level, below 71.6 and 61.8 Fibonacci retracement levels and SMA50. The most important support is now $87 level, where SMA200 is located.
Source: xStation5
