Subject category:
Strategy and General Management
Published by:
Babson College
Version: December 2010
Length: 30 pages
Data source: Published sources
Abstract
This is the first of a two-case series. The Ticket Master-Live Nation case presents for analysis a situation in which a dominant player in the ticketing space seeks to acquire a dominant player in the live entertainment space, who also happens to account for around a third of its revenues. This potential acquisition which could be seen as an attempt at vertical integration and involving two dominant players in adjacent industries raises some interesting questions. The case provides an opportunity to analyze a number of important issues related to mergers and acquisitions such as acquisition motives, strategic and financial issues related to acquisitions, sources of value creation, valuation of acquisition targets, the implications of post-merger integration challenges, and the role of anti-trust and Department of Justice actions with respect to mergers and acquisitions.
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Abstract
This is the first of a two-case series. The Ticket Master-Live Nation case presents for analysis a situation in which a dominant player in the ticketing space seeks to acquire a dominant player in the live entertainment space, who also happens to account for around a third of its revenues. This potential acquisition which could be seen as an attempt at vertical integration and involving two dominant players in adjacent industries raises some interesting questions. The case provides an opportunity to analyze a number of important issues related to mergers and acquisitions such as acquisition motives, strategic and financial issues related to acquisitions, sources of value creation, valuation of acquisition targets, the implications of post-merger integration challenges, and the role of anti-trust and Department of Justice actions with respect to mergers and acquisitions.