Live Nation Inc., the world's largest concert promoter, is in the midst of plans to buy Ticketmaster Entertainment Inc. for $400-million in stock, creating a firm with dominant holdings in concert promotions and ticket sales.

However, the news only caused the shares of both Live Nation and Ticketmaster to fall, amidst concerns U. S. anti-trust regulators will block the acquisition under Obama's new administration.

Slamming the deal ahead of its formal announcement, U. S. Senator Charles Schumer called for a federal probe into Ticketmaster, saying: 'This merger would give a giant, new entity unrivaled power over concert-goers and the prices they pay to see their favorite artists and bands'.

If, U. S. A.'s top ticket vendor and Live Nation Entertainment merge, the new company formed out of the merger would be able to sell
140-million tickets annually at more than 140-concert venues globally that host 22,000 concerts a year.

It's client roster would include over 200 big-name artists, including Madonna, Jay-Z, Miley Cyrus and the Eagles, due to Ticketmaster's acquisition of Front Line Management Inc. last year and Live Nation, who successfully signs on big stars by paying them the best money in town.

A merger of equals, if the deal closes in the second half of 2009, it would create a $2.5-billion firm, including debt, assuming regulatory approval is obtained.

Already, regulators, fans, artists and record labels are questioning the deal, as it would give the new company - Live Nation Entertainment, too much power over live music business. But, both TicketMaster and LiveNation believe many benefits will accrue from the merger, such as:

1. Artists, promoters and ticketing company uniting under a combined banner will improve access and transparency.
2. Improvement in ticket pricing options will improve.
3. Increased investment in better ticketing technology.