Shares of Live Nation Entertainment were down in premarket trading on Thursday after reports that the U.S. government and some states will seek to break up the live-events giant in a lawsuit that could be filed this week.
The legal action would focus on Live Nation’s Ticketmaster arm and its control over the market for concert tickets, according to multiple media reports, an issue that has vexed artists and fans for decades but was freshly brought to the fore after the botched release of Taylor Swift tickets in 2022.
Ticketmaster merged with Live Nation in 2010 in a deal that was reviewed and approved at the time by the Department of Justice (DOJ), the same entity that news reports say will accuse Live Nation of monopoly practices in a lawsuit this week. The rumored lawsuit was reported by a number of outlets citing anonymous sources, including Bloomberg, the New York Times, and the Financial Times.
Reached for comment by Fast Company, the DOJ said it planned to make an “antitrust announcement” later this morning, but did not offer more details. Live Nation did not immediately respond to a request for comment.
Live Nation stock was down more than 5% in premarket trading at the time of this writing. Shares have generally been on the rise and were up more than 10% year to date before the markets closed on Wednesday.
Live Nation has been in the government’s crosshairs for years, with the latest investigation into the company’s practices opening in 2022. However, the rumored lawsuit also reflects the aggressive stance taken more broadly against anticompetitive practices by the Biden administration’s DOJ, which has also filed lawsuits against tech giants such as Google and Apple.
This story has been updated with the DOJ’s response to our inquiry.