Live Nation settles antitrust case with DOJ, avoids Ticketmaster breakup

Live Nation, Ticketmaster's parent company, has successfully avoided a spinoff, a major development in one of the highest-profile antitrust cases in decades. The company and the Justice Department reached a settlement Monday, following a week of testimony during an antitrust trial that threatened to potentially break up the world's largest live entertainment company. Omeed Assefi, acting assistant attorney general of the Antitrust Division, and Michael Rapino, CEO of Live Nation, met face-to-face Thursday to negotiate terms, NBC News has learned. In court Monday, U.S. District Judge Arun Subramanian said he received an email Sunday night notifying the court that the Justice Department and Live Nation had reached a settlement, but that he had not seen a term sheet until that morning. The parties "did not disclose any updates on a settlement," Subramanian said in court. "It shows an absolute lack of respect for the court, the jury and this entire process. It is absolutely unacceptable." "There is no way we should have been in the middle of cross-examining a witness" on Friday, given that the Justice Department and Live Nation had agreed to terms of the deal the day before. Justice Department attorney David Dahlquist told the judge that he had received the term sheet for the deal with Live Nation around the same time Monday morning that Subramanian first saw it. Subramanian questioned Dahlquist: "You are the top lawyer for the United States and you didn't receive it until I received it?" “That is correct, your honor,” Dahlquist responded. Subramanian said he expected Assefi and Rapino to appear in court at 8:30 a.m. ET on Tuesday to further address the issue of disclosure. Any final deal would require Subramanian's approval to be legally binding. In a background call with reporters on Monday, a top judicial official said the deal will reduce prices by giving more options to both artists and consumers. As part of the agreement, Ticketmaster will provide an independent ticketing system that will allow third-party companies such as SeatGeek and StubHub to offer prime tickets through the platform. The top justice official described his ticketing model as “open source.” Ticketmaster will also sell up to 13 amphitheaters, reserve 50% of tickets for non-exclusive venues and cap ticketing service fees at 15%. A $280 million settlement fund has also been created to address states' damage claims. Ticketmaster is also prohibited from retaliating against a venue that selects another major ticket distributor, among other requirements. "We have never relied on exclusivity to drive our ticketing business, it has simply been a result of having the best products, services and people in the industry," Live Nation's Rapino said in a statement. “We are happy to take further steps to empower artists and venues in their ticket sales decisions, and we are confident that we will continue to be successful in the quality of what we offer.” Although a group of states have joined the Department of Justice in signing the agreement, other states can continue to file their own claims. Early Monday, a group of 26 states, including Washington, D.C., requested a motion to mistrial. New York Attorney General Letitia James said, "My attorney general colleagues and I have a strong case against Live Nation, and we will continue our lawsuit to protect consumers and restore fair competition to the live entertainment industry." "We will continue to fight this case without the federal government so we can ensure justice for all those harmed by Live Nation's monopoly," James said in a statement following news of the settlement. The settlement follows a years-long legal battle in which the Justice Department along with 40 states, including Was