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.
