Thursday, 13 June 2013

Live Nation prevail in battle with CTS

Live Nation Entertainment, Inc has reported that it has prevailed in its arbitration against Germany-based CTS Eventim AG. . The arbitration proceedings related to the former ticketing software license agreement between the two companies, and had been pending with the International Court of Arbitration of the International Chamber of Commerce since its initiation by CTS in April 2010. The decision removes an estimated $210 million potential  charge for Live Nation: The company terminated a 10-year contract with CTS in 2010 that covered ticketing systems in the U.S., Canada and some European countries. Live Nation, also the world’s biggest concert promoter, saying CTS failed to deliver a “world-class ticketing system,” according to a company regulatory filing. The arbitrator ruled that the company validly terminated its ticketing software license agreement with CTS in June 2010, and therefore has no liability to CTS. "We are very pleased with, but not surprised by, today's ruling. The arbitrator's final decision vindicates Live Nation's steadfast position that we justifiably terminated our contract with CTS," said Michael Rapino, president and chief executive officer of Live Nation Entertainment. Whether CTS take the matter further remains to be seen. Shares Live Nation Entertainment Inc. rose 17 percent to $16.17 at the close in New York, the most since March 2009. Including today’s gain, the stock has climbed 74 percent this year.

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