The Department of Justice (DOJ) is reportedly preparing to file an antitrust lawsuit against Live Nation Entertainment in the coming weeks, following a two-year investigation into the company's business practices.

The investigation focuses on alleged market-power abuses and whether Live Nation's deals prevent venues from working with competitors. This scrutiny intensified following the controversial Taylor Swift Eras Tour pre-sale incident in 2022.

During Live Nation's Q3 2023 earnings call, CFO Joe Berchtold downplayed the investigation's significance, stating they were still in the document production phase. However, February 2024 saw new information requests from the DOJ.

Key developments:

• Live Nation reported a 36% revenue increase in 2023, reaching $22.7 billion
• Congressional scrutiny continues over ticket pricing practices and market dominance
• The company faces additional investigation from a former Louisiana attorney general
• Live Nation recently published a detailed defense of their ticket pricing practices

The company's stock (NYSE: LYV) responded to the news with a 6.5% decline, trading at $93.25 per share.

The specific allegations in the upcoming DOJ complaint remain unknown, but the case could significantly impact the live entertainment industry's future structure and practices. Live Nation is scheduled to release its Q1 2024 financial results on May 2nd.

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