Live Nation and the Justice Department have reached a settlement over ticketing practices, the company confirmed Thursday.
Shares of Live Nation jumped 9% on the initial news of a deal.
Live Nation said that it has reached an agreement “in principle” with the DOJ to extend and clarify the consent decree that was formed in 2010 when Live Nation merged with Ticketmaster.
“We believe this is the best outcome for our business, clients and shareholders as we turn our focus to 2020 initiatives,” the company said in a statement.
Live Nation will extend the terms of the consent decree, or merger settlement, an additional five and a half years through December 2025, a source close to the situation told CNBC on Thursday. It was meant to expire in July of 2020.
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.
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 for 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.