The revelation, made before a House subcommittee examining the proposed merger for antitrust concerns, was meant to suggest the combination might somewhat weaken Ticketmaster Entertainment Inc.'s grip on ticket contracts with a majority of top U.S. venues.
Ticketmaster CEO Irving Azoff said his company received a warning from AEG Live, the owner of 130 venues including the Staples Center in Los Angeles, that it may cancel its contract with Ticketmaster if it merges with Live Nation Entertainment Inc. in an all-stock deal that would value the combined entity around $2.2 billion.
“Others will most certainly leave if this merger is consummated," Azoff testified before the House subcommittee on courts and competition policy. “AEG has notified us by letter that they believe they have the right to terminate our agreement in connection with this merger."
“If that's not competition, I don't know what is," he said.
AEG Live Chief Executive Randy Phillips did not immediately return a message for comment.
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