Live Nation would be a 'shell of itself' without Ticketmaster: Analyst

In the wake of Tuesday's Senate Judiciary Committee hearing into the ticketing industry, one analyst is warning a potential forced uncoupling of Live Nation (LYV) and Ticketmaster would be dire for the company.

"Live Nation would be a shell of itself without Ticketmaster, in my view, because that's where they get all the data on consumers that powers the rest of their business," Douglas Arthur, analyst at Huber Research Partners, told Yahoo Finance Live on Tuesday.

Arthur explained the concert business is a loss leader with margins hovering around 1%, with Live Nation making the bulk of its cash through ticketing, sponsorships, and advertising.

"Without Ticketmaster in the center of that cog, or that machine, the parts wouldn't hold together as well."

A previous court filing from the Department of Justice revealed Live Nation commands more than 80% of the market, although Live Nation President and CFO Joe Berchtold contended Live Nation's market share is now closer to 50%-60% during Tuesday’s Senate hearing

"This is all the definition of monopoly," Sen. Amy Klobuchar, D-Minnesota, said during Tuesday's hearing. "Live Nation is so powerful that it doesn't even need to exert pressure, it doesn't need to threaten, because people just fall in line."

'Tsunami of big acts'

Investors seemed to shrug off the initial impact of Tuesday's hearing, with shares of Live Nation rising about 2% at its conclusion.

The stock, which hit its lowest level since February 2021 in the immediate wake of the Swift debacle, has climbed more than 10% since the start of the year, though is still off roughly 20% from a year ago.

"The uncertainty over the future of Ticketmaster, which led up to this hearing, is another overhang on the stock," Arthur said, noting the company's increased debt and an elevated valuation relative to the overall industry have also weighed on the stock.