Live Nation operates music ventures provides managment services the music artist

Question

Live Nation operates music ventures provides managment services the music artists, and promises more than 22,000 live music events annually. The company merged with Ticketmaster and acquired concert and festival promoters in the United States, Australia, and Great Britain. How has Live Nation company used horizontal mergers and acquisitions to strengthen its competitive position? Are these moves primarily offensive or defensive? Has either Ticketmaster or Live Nation achieved any type of advantage based on the timing of its strategic moves?

Explanation / Answer

The merger between Live Nation and Tricketmaster is considered as horizontal merger because it is a merger between the companies in the same or similar industry. Horizontal mergers are common when the product or service has fewer companies, because the competition tends to be higher and the teaming and potential gains in market share are much greater for merging companies in such an industry.

With the help of the merger the company not only lose a competitor but they gain everything from the former competitor which helps strengthen each of their own abilities. Combining the companies creates more market share, lowers costs and helps efficiency.

These moves defensive in natural because this merger will result in many benfits such as strengthing its abilities, increased market share and lower costs etc. Thus Live nation has achieved many advantages based on its strategic moves as its business spread across many countries.

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