Why Now Is The Time To Buy Live Nation Entertainment (LYV)

In January, Ticketmaster Entertainment and Live Nation completed a merger that created a new company called Live Nation Entertainment, Inc.

. The company now owns more than 140 concert venues globally, will sell 140 million tickets a year, and will promote 22,000 concerts around the world annually. Live Nation, which has struck deals with Jay-Z, Madonna, and U2, is fortunate to partner with the the popular ticket-selling service. The opportunities are many, as evidenced by the company's $1.7 billion market capitalization. According to a Reuters report, "Under the merger terms, Ticketmaster shareholders receive 1.384 shares of Live Nation common stock for each share of Ticketmaster. Live Nation own 49.99 percent of the combined company, while Ticketmaster holds the remaining 50.01 percent." Live Nation Entertainment is now competing within an ever-evolving music industry. With CD sales down and consumers spending less and less on music purchases, companies must now secure new revenue streams. One example is Jay-Z's 2008 $150 million deal with Live Nation. The New York Times notes that "The deal answers a question that had been circling through the rap world for months: Where would Jay-Z take his next corporate role? As part of the arrangement, Live Nation would finance the start-up of a venture that would be an umbrella for his outside projects, which are expected to include his own label, music publishing, and talent consulting and managing. Live Nation is expected to contribute $5 million a year in overhead for five years, with another $25 million available to finance Jay-Z's acquisitions or investments, according to people in the music industry briefed on the agreement. The venture, to be called Roc Nation, will split profits with Live Nation." Essentially, the new company is redefining the economics of how music is consumed and distributed. Between ticket sales, promotion, publishing, and management, Live Nation Entertainment's "360 degree" strategy is unlike any other music or media company. While the merger has its share of critics, the potential growth of Live Nation Entertainment is difficult to ignore. The Times reports that "Jay-Z said Live Nation's consolidated approach was in sync with the emerging potential "to reach the consumer in so many different ways right now." He added: "Everyone's trying to figure it out. I want to be on the front lines in that fight." Importantly, the company's shares are positioned to make a run. The stock failed to break below $8.40 this summer, and could find buyers above $10. Currently, shares are trading at $9.90, and bulls may soon eye 52-week highs of $16.70, hit in April. Don't ignore this company! Live Nation Entertainment is a new force in the global entertainment business, and music and concerts aren't going out of style any time soon.