Live Nation Entertainment, Inc. (LYV) Beats CTS In Court, Shares Surge

Live Nation Entertainment, Inc. (LYV) Beats CTS In Court, Shares Surge

Live Nation Entertainment, Inc. (NYSE:LYV) has just announced that it beat CTS Eventim AG (ETR:EVD) in a court battle. Trading on the company’s shares was halted briefly right before it announced the news, but soon after the big announcement, shares surged by as much as 9 percent.

Play Quizzes 4


The Case Against Live Nation Entertainment

The company announced the legal win in a press release distributed through PR Newswire. It said that the arbitrator who was handling the case ruled that the company’s termination of its software license agreement in June 2010 was valid. As a result, Live Nation Entertainment, Inc. (NYSE:LYV) isn’t liable to CTS Eventim AG (ETR:EVD).

Fund Manager Profile: Zhang Hui Of China’s Southern Asset Management

investHistorically, the Chinese market has been relatively isolated from international investors, but much is changing there now, making China virtually impossible for the diversified investor to ignore. Earlier this year, CNBC pointed to signs that Chinese regulators may start easing up on their scrutiny of companies after months of clamping down on tech firms. That Read More

The lawsuit was in connection with an agreement which existed between the two companies prior to June 2010. The agreement dealt with ticketing software, and it was filed by CTS Eventim AG (ETR:EVD) in April 2010 with the International Court of Arbitration of the International Chamber of Commerce.

The site 24/7 Wall St reports that the complaint alleged Live Nation didn’t validly terminate that agreement. CTS was seeking unspecified damages, claiming that Live Nation must pay it a fee, whether or not it used CTS’ ticketing platform.

Live Nation argued that CTS breached the agreement by not providing ticketing platforms which met European and North American standards. Live Nation had said recently in its 10-Q filing that if CTS won the case, the damages awarded might be “substantial.”

Implications For Live Nation’s Win

Live Nation Entertainment, Inc. (NYSE:LYV) owns Ticketmaster, and this legal win removes the liability to the profitable unit, clearing the way for greater profits at Ticketmaster. CTS Eventim is one of Ticketmaster’s biggest competitors, reports Bloomberg Businessweek’s Andy Fixmer.

“We are very pleased with, but not surprised by, today’s ruling,” said Live Nation Entertainment President and CEO Michael Rapino in a statement. “The arbitrator’s final decision vindicates Live Nation’s steadfast position that we justifiably terminated our contract with CTS.”

Live Nation Entertainment’s Stock Price

Shares of Live Nation Entertainment, Inc. (NYSE:LYV) have risen steadily since the beginning of the year after hovering around the $10 per share mark for much of 2011 and 2012. In April 2010, the company’s stock shot up over $15 per share, which where it is as of this writing. By August of the same year, it had dipped below $10 per share.

Updated on

Michelle Jones is editor-in-chief for and has been with the site since 2012. Previously, she was a television news producer for eight years. She produced the morning news programs for the NBC affiliates in Evansville, Indiana and Huntsville, Alabama and spent a short time at the CBS affiliate in Huntsville. She has experience as a writer and public relations expert for a wide variety of businesses. Email her at
Previous article Byron Wien: Profit Margins Have Peaked, ‘Trouble Ahead’ [VIDEO]
Next article Apple Inc. (AAPL), Google Inc (GOOG) Continue To Map Their Futures

No posts to display