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“This is a very exciting and groundbreaking venture that will enable us to offer unmatched programs, and afford endless opportunities for our artists, managers and fans.”
——Irving Azoff

TICKETMASTER COUNTERPUNCHES, NAMES AZOFF TO RUN THE SHOW

Long-Dominant Ticketing Service Attempts to Outmaneuver Rival Live Nation, Instantly Picking Up a Star-Studded Roster as Well as a Legendary Dealmaker and Gunslinger
As if the guy didn’t already have enough on his plate…

In an earthshaking deal that will be announced today, Ticketmaster is expected to acquire a majority interest in Front Line Management, creating an entity called Ticketmaster Entertainment Inc., with Irving Azoff taking the title of CEO and present CEO Sean Moriarty reporting to Azoff.

Azoff confirmed the arrangement late Wednesday, circulating an email to friends and colleagues describing it as “a historic transaction that will transform the business… Needless to say, this is a very exciting and groundbreaking venture that will enable us to offer unmatched programs, and afford endless opportunities for our artists, managers and fans.” He also confirmed that he’ll continue in his role as CEO of Front Line.

The move is a bold counterpunch to Live Nation’s efforts to create a ticketing power to rival that of long-dominant Ticketmaster. The Michael Rapino-led company is engaged in an aggressive campaign to secure the ticketing services for major venues that are or have been in business with Ticketmaster prior to launch in January.

From a strategic standpoint, Ticketmaster now has significantly increased its leverage with these venues by way of Azoff’s industry-leading, ever-expanding artist roster, which boasts sufficient star power to counter Live Nation’s signings of Madonna, Jay-Z, Shakira and Nickelback. As one person close to the deal put it to the Wall Street Journal’s Ethan Smith, who broke the story last night, "We'll see your Jay-Z and raise you Jimmy Buffett."

In an interview with Smith, Azoff said that he wouldn't attempt to use the combined resources of the new company to give his clients an advantage in the market for concertgoers' dollars. "All artists will benefit," he said, "whether they're Front Line artists or not."

Ticketmaster already owns a minority interest in Front Line, having inherited from Ticketmaster's former parent, Barry Diller’s IAC InterActive, from which Ticketmaster was spun off in August. To attain a majority in Front Line, Ticketmaster will pay about $123 million to Warner Music Group for the roughly 30% stake that WMG picked up last year, Smith reports.

In a separate interview, Diller said: "Ticketmaster is obviously going to expand in the things that it does, in the areas that it provides services, and having it led by the force that is Irving Azoff gives Ticketmaster a really good chance to continue to be successful."

According to Smith, Azoff is expected to trade an unspecified portion of his Front Line holding for about 4.5% of Ticketmaster's total shares, a stake worth at least $35 million that would make the mega-manager one of Ticketmaster's largest shareholders. Azoff will retain a "sizable" minority interest in Front Line, Ticketmaster said.