Exhibit 99.1  ITEM 1A.  RISK FACTORS FROM LIVE NATION ENTERTAINMENT,
INC.S ANNUAL REPORT ON 
FORM 10-K FOR THE YEAR ENDED DECEMBER 31, 2009  Risks Associated with Our Leverage  We have a large amount of debt, redeemable preferred stock
and lease obligations that could restrict our operations and impair our
financial condition.  As of December 31,
2009, Live Nations total indebtedness for borrowed money, including its
redeemable preferred stock and excluding the debt discount on the convertible
notes, was approximately $832.9 million. Live Nations available borrowing
capacity under the revolving portion of its senior secured credit facility at
that date was approximately $141.4 million, with sub-limits up to $235.0
million available for letters of credit. At December 31, 2009, outstanding
letters of credit were approximately $42.3 million. As of December 31,
2009, Ticketmasters total indebtedness for borrowed money was approximately
$812.0 million. Ticketmasters available borrowing capacity under the revolving
portion of its senior secured credit facility at that date was approximately
$115.0 million, with sub-limits up to $20.0 million available for letters of
credit. At December 31, 2009, outstanding letters of credit were
approximately $1.0 million. We may incur substantial additional indebtedness in
the future.  Our
substantial indebtedness could have adverse consequences, including:  ·making it more difficult for us to satisfy our
obligations;  ·increasing our vulnerability to adverse economic,
regulatory and industry conditions;  ·limiting our ability to obtain additional financing
for future working capital, capital expenditures, mergers and other purposes;  ·requiring us to dedicate a substantial portion of our
cash flow from operations to fund payments on our debt, thereby reducing funds
available for operations and other purposes;  ·limiting our flexibility in planning for, or reacting
to, changes in our business and the industry in which we operate;  ·making us more vulnerable to increases in interest
rates;  ·placing us at a competitive disadvantage compared to
our competitors that have less debt; and  ·having a material adverse effect on us if we fail to
comply with the covenants in the instruments governing our debt and redeemable
preferred stock.  To service our debt, redeemable preferred stock and lease
obligations and to fund potential acquisitions, artist advances and capital
expenditures, we will require a significant amount of cash, which depends on
many factors beyond our control.  As of December 31,
2009, approximately $41.0 million of Live Nations total indebtedness
(excluding interest) is due in 2010, $198.7 million is due in the aggregate for
2011 and 2012, $579.9 million is due in the aggregate for 2013 and 2014 and
$13.3 million is due thereafter. See the table in Item 7. Managements
Discussion and Analysis of Financial Condition and Results of OperationsContractual
Obligations and CommitmentsFirm Commitments. As of December 31, 2009, no
portion of Ticketmasters total indebtedness (excluding interest) is due in
2010, $31.8 million is due in the aggregate for 2011 and 2012, $493.2 million
is due in the aggregate for 2013 and 2014 and $287.0 million is due thereafter.  Live
Nations redeemable preferred stock bears an annual dividend rate of 13%, or
$5.2 million annually, and is subject to financial and other covenants
substantially similar to the covenants applicable to its senior secured credit
facility. If Live Nation exceeds certain of these covenants, it will have to
pay additional dividends. In addition, as of December 31, 2009, Live
Nation had approximately $1.4 billion in operating lease agreements, of which
approximately $81.9 million is due in 2010 and $81.8 million is due in 2011. As
of December 31, 2009,


Ticketmaster had
approximately $99.0 million in operating lease agreements, of which
approximately $26.6 million is due in 2010 and $19.2 million is due in 2011.  Our
ability to service our debt, redeemable preferred stock and lease obligations
and to fund potential acquisitions, artist advances and capital expenditures
for venue construction, expansion or renovation will require a significant amount
of cash, which depends on many factors beyond our control. Our ability to make
payments on and to refinance our debt will also depend on our ability to
generate cash in the future. This, to an extent, is subject to general
economic, financial, competitive, legislative, regulatory and other factors
that are beyond our control.  We
cannot assure you that our business will generate sufficient cash flow or that
future borrowings will be available to us in an amount sufficient to enable us
to pay our debt or to fund our other liquidity needs. We cannot predict the
impact to our ability to access additional capital in light of the current
uncertainty in the credit market. If our future cash flow from operations and
other capital resources are insufficient to pay our obligations as they mature
or to fund our liquidity needs, we may be forced to reduce or delay our
business activities and capital expenditures, sell assets, obtain additional
equity capital or restructure or refinance all or a portion of our debt on or
before maturity. In addition, the terms of our existing debt, including our
senior secured credit facility, other future debt and our redeemable preferred
stock may limit our ability to pursue any of these alternatives.  These
measures might also be unsuccessful or inadequate in permitting us to meet
scheduled debt, redeemable preferred stock or lease service obligations. We may
be unable to restructure or refinance our obligations and obtain additional
equity financing or sell assets on satisfactory terms or at all. As a result,
the inability to meet our debt, redeemable preferred stock or lease obligations
could cause us to default on those obligations. Any such defaults could
materially harm our financial condition and liquidity.  The agreement governing our senior secured credit
facilities, our redeemable preferred stock designations and certain of our
other indebtedness impose restrictions on us that limit the discretion of
management in operating our business and that, in turn, could impair our ability
to meet our obligations under our debt.  The
agreement governing our senior secured credit facilities, our redeemable
preferred stock designations and certain of our other indebtedness include
restrictive covenants that, among other things, restrict our ability to:  ·incur additional debt or issue redeemable preferred
stock;  ·pay dividends and make distributions;  ·make certain investments;  ·repurchase our stock and prepay certain indebtedness;  ·create liens;  ·enter into transactions with affiliates;  ·modify the nature of our business;  ·enter into sale-leaseback transactions;  ·transfer and sell material assets; and  ·merge or consolidate.  In
addition, our senior secured credit facilities and redeemable preferred stock
designations include other restrictions, including requirements to maintain
certain financial ratios. Our failure to comply with the terms and covenants in
our indebtedness could lead to a default under the terms of the governing
documents, which would entitle the lenders to accelerate the indebtedness and
declare all amounts owed due and payable. If we default under any of the
covenants applicable to our redeemable preferred stock, the holders of our
redeemable preferred stock may be entitled to elect a director of one of our
subsidiaries, and we will have to pay additional dividends.  These
covenants could materially and adversely affect our ability to finance our
future operations or capital needs. Furthermore, they may restrict our ability
to expand, to pursue our business strategies and otherwise to conduct our
business. Our ability to comply with these covenants may be affected by
circumstances and events beyond our control, such as prevailing economic
conditions and changes in regulations, and we cannot assure you that we will be
able to comply. A breach of these covenants could result in a default under our
debt. If there were an


event of default under
our outstanding indebtedness and the obligations thereunder accelerated, our
assets and cash flow might not be sufficient to repay our outstanding debt and
we could be forced into bankruptcy.  We will depend on the cash flows of our subsidiaries in
order to satisfy our obligations.  We
will rely on distributions and loans from our subsidiaries in order to meet our
payment requirements under our obligations. If our subsidiaries are unable to
pay dividends or otherwise make payments to us, we may not be able to make debt
service payments on our obligations. We are a holding company and conduct
substantially all of our operations through our subsidiaries. Our operating
cash flows and consequently our ability to service our debt is therefore
principally dependent upon our subsidiaries earnings and their distributions
of those earnings to us and may also be dependent upon loans or other payments
of funds to us by those subsidiaries. Our subsidiaries are separate legal
entities and may have no obligation, contingent or otherwise, to pay any amount
due pursuant to our obligations or to make any funds available for that
purpose. In addition, the ability of our subsidiaries to provide funds to us
may be subject to restrictions under our senior secured credit facilities and
the outstanding redeemable preferred stock of our subsidiary and may be subject
to the terms of such subsidiaries future indebtedness, as well as the
availability of sufficient surplus funds under applicable law.  Any inability to fund the significant up-front cash
requirements associated with our touring business could result in the loss of
key tours.  In
order to secure a tour, including global tours by major artists, we are often
required to post a letter of credit or advance cash to the artist prior to the
sale of any tickets for that tour. If we do not have sufficient cash on hand or
capacity under our revolving credit facility to advance the necessary cash or
post the required letter of credit, for any given tour we would not be able to
promote that tour and our touring business would be negatively impacted.  Risks Relating to our 2.875%
Convertible Senior Notes  We may not have the funds necessary to finance the
repurchase of the notes or to pay the cash payable upon a conversion (if we
make the net share settlement election), or we may otherwise be restricted from
making such payments, which may increase note holders credit risk.  In July 2007,
we issued $220 million of 2.875% convertible senior notes due 2027 in a private
placement in the United States to qualified institutional buyers pursuant to Rule 144A
under the Securities Act of 1933, as amended. On July 15, 2014, July 15,
2017 and July 15, 2022, or in the event of a fundamental change (as
defined in the indenture governing the notes), holders may require us to
repurchase their notes at a price of 100% of the principal amount of the notes,
plus accrued and unpaid interest, including contingent interest and additional
amounts, to the repurchase date. In addition, at any time on or prior to June 15,
2027, we may irrevocably elect net share settlement of the notes, and
thereafter we will be required to make a cash payment of up to $1,000 for each
$1,000 in principal amount of notes converted. However, it is possible that we
will not have sufficient funds available at such time to make the required
repurchase or settlement of converted notes. In addition, some of our existing
financing agreements contain, and any future credit agreements or other
agreements relating to our indebtedness could contain, provisions prohibiting
the repurchase of the notes under certain circumstances, or could provide that
a fundamental change constitutes an event of default under that agreement,
restrict our ability to make cash payments upon conversion of the notes or
restrict the ability of our subsidiaries to make funds available to us for that
purpose. If any agreement governing our indebtedness prohibits or otherwise
restricts us from repurchasing the notes or making the cash payment upon
conversion when we become obligated to do so, we could seek the consent of the
lenders to repurchase the notes or settle the conversion or attempt to refinance
the other debt. If we do not obtain such consent or refinance the debt, we
would not be permitted to repurchase the notes or settle the conversion without
potentially causing a default under the other debt. Our failure to repurchase
tendered notes or to pay any cash payable on a conversion would constitute an
event of default under the indenture, which might constitute a default under
the terms of our other indebtedness.


The additional shares of common stock payable on any notes
converted in connection with specified corporate transactions may not
adequately compensate holders of notes for any loss they may experience as a
result of such specified corporate transactions.  If
certain specified corporate transactions occur on or prior to July 15, 2014,
we will under certain circumstances increase the conversion rate on notes
converted in connection with the specified corporate transaction by a number of
additional shares of common stock. The number of additional shares of common
stock will be determined based on the date on which the specified corporate
transaction becomes effective and the price paid per share of our common stock
in the specified corporate transaction. The additional shares of common stock
issuable upon conversion of the notes in connection with a specified corporate
transaction may not adequately compensate holders of notes for any loss they
may experience as a result of such specified corporate transaction.
Furthermore, holders of notes will not receive the additional consideration payable
as a result of the increase in the conversion rate until the effective date of
the specified corporate transaction or later, which could be a significant
period of time after holders of notes have tendered their notes for conversion.
If the specified corporate transaction occurs after July 15, 2014, or if
the price paid per share of our common stock in the specified corporate
transaction is less than the common stock price at the date of issuance of the
notes or above a specified price, there will be no increase in the conversion
rate. In addition, in certain circumstances upon a change of control arising
from our acquisition by a public company, we may elect to adjust the conversion
rate and, if we so elect, holders of notes will not be entitled to the increase
in the conversion rate determined as described above.  The conditional conversion feature of the notes could result
in holders of notes receiving less than the value of the common stock for which
a note would otherwise be convertible.  Prior
to July 15, 2027, the notes are convertible for shares of our common stock
(or cash or a combination of cash and shares of our common stock) only if
specified conditions are met. If the specific conditions for conversion are not
met, holders of notes will not be able to convert their notes, and they may not
be able to receive the value of the common stock or cash and common stock, as
applicable, for which the notes would otherwise be convertible.  Upon conversion of the notes, holders of notes may receive
less proceeds than expected because the value of our common stock may decline
after the exercise of the conversion right.  If we
elect to settle conversions other than solely in shares of common stock,
including by making a net share settlement election, the conversion value that
holders of notes will receive upon conversion of their notes are in part
determined, subject to certain exceptions, by the average of the last reported
sale prices of our common stock for the 20 trading days beginning on the second
trading day immediately following the day the notes are tendered for
conversion, or, if tendered within the 20 days leading up to the maturity date
or a specified redemption date, beginning on the fifth day following the
maturity date or the redemption date. Accordingly, if the price of our common
stock decreases after holders of notes tender their notes for conversion, the
conversion value they will receive may be adversely affected.  The conversion rate of the notes may not be adjusted for all
dilutive events.  The
conversion rate of the notes is subject to adjustment only for certain
specified events, including, but not limited to, the issuance of stock
dividends on our common stock, the issuance of certain rights or warrants,
subdivisions, combinations, distributions of capital stock, indebtedness or
assets, cash dividends and certain issuer tender or exchange offers. However,
the conversion rate will not be adjusted for other events, such as an issuance
of common stock for cash or acquisition, that may adversely affect the trading
price of the notes or the common stock, or for a third-party tender offer. For
example, the conversion rate was not adjusted as a result of our merger with
Ticketmaster.  Risks Relating to Our Business  Our live music business is highly sensitive to public tastes
and dependent on our ability to secure popular artists and other live music
events, and we may be unable to anticipate or respond to changes in consumer
preferences, which may result in decreased demand for our services.  Our
ability to generate revenue from our music operations is highly sensitive to
rapidly changing public tastes and dependent on the availability of popular
artists and events. Our success depends in part on our ability to


anticipate the tastes of
consumers and to offer events that appeal to them. Since we rely on unrelated
parties to create and perform live music content, any unwillingness to tour or
lack of availability of popular artists could limit our ability to generate
revenue. In particular, there are a limited number of artists that can headline
a major North American or global tour or who can sell out larger venues,
including many of our amphitheaters. If those key artists do not continue to
tour, or if we are unable to secure the rights to their future tours, then our
business would be adversely affected.  In
addition, we typically book our live music tours one to four months in advance
of the beginning of the tour and often agree to pay an artist a fixed
guaranteed amount prior to our receiving any operating income. Therefore, if
the public is not receptive to the tour, or we or a performer cancel the tour,
we may incur a loss for the tour depending on the amount of the fixed guarantee
or incurred costs relative to any revenue earned, as well as foregone revenue
we could have earned at booked venues. We have cancellation insurance policies
in place to cover a portion of our losses if a performer cancels a tour but it
may not be sufficient and is subject to deductibles. Furthermore, consumer preferences
change from time to time, and our failure to anticipate, identify or react to
these changes could result in reduced demand for our services, which would
adversely affect our operating results and profitability.  We have incurred net losses and may experience future net
losses.  Our
operating results from continuing operations have been adversely affected by,
among other things, event profitability and overhead costs. Live Nation
incurred net losses of approximately $126.0 million, $333.5 million and $62.3
million in 2009, 2008 and 2007, respectively. We may face reduced demand for
our live music events and other factors that could adversely affect our results
of operations in the future. We cannot predict whether we will achieve
profitability in future periods.  Our operations are seasonal and our results of operations
vary from quarter to quarter and year over year, so our financial performance
in certain financial quarters or years may not be indicative of, or comparable
to, our financial performance in subsequent financial quarters or years.  We
believe our financial results and cash needs will vary greatly from quarter to
quarter and year to year depending on, among other things, the timing of tours,
tour cancellations, capital expenditures, seasonal and other fluctuations in
our operating results, the timing of guaranteed payments and receipt of ticket
sales, financing activities, acquisitions and investments and receivables
management. Because our results may vary significantly from quarter to quarter
and year to year, our financial results for one quarter or year cannot
necessarily be compared to another quarter or year and may not be indicative of
our future financial performance in subsequent quarters or years. Typically, we
experience our lowest financial performance in the first and fourth quarters of
the calendar year as our outdoor venues are primarily used, and our festivals
primarily occur, during May through September. In addition, the timing of
tours of top grossing acts can impact comparability of quarterly results year
over year and potentially annual results.


The
following table sets forth Live Nations operating income (loss) for the last
eight fiscal quarters:  OperatingFiscal Quarter Ended
  
  income
  (loss)(in thousands)March 31, 2008
  
  $
  (74,770
  )June 30, 2008
  
  $
  26,531September 30,
  2008
  
  $
  74,377December 31,
  2008
  
  $
  (323,431
  )March 31, 2009
  
  $
  (88,259
  )June 30, 2009
  
  $
  (8,135
  )September 30,
  2009
  
  $
  108,399December 31,
  2009
  
  $
  (64,361
  )  We may be adversely affected by the current, or any future,
general deterioration in economic conditions, which could affect consumer and
corporate spending and, therefore, significantly adversely impact our operating
results.  A
decline in attendance at or reduction in the number of live music events may
have an adverse effect on our revenue and operating income. In addition, during
past economic slowdowns and recessions, many consumers reduced their
discretionary spending and advertisers reduced their advertising expenditures.
The impact of slowdowns on our business is difficult to predict, but they may
result in reductions in ticket sales, sponsorship opportunities and our ability
to generate revenue. The risks associated with our businesses may become more
acute in periods of a slowing economy or recession, which may be accompanied by
a decrease in attendance at live music events.  Our
business depends on discretionary consumer and corporate spending. Many factors
related to corporate spending and discretionary consumer spending, including
economic conditions affecting disposable consumer income such as employment,
fuel prices, interest and tax rates and inflation which can significantly
impact our operating results. Business conditions, as well as various industry
conditions, including corporate marketing and promotional spending and interest
levels, can also significantly impact our operating results. These factors can
affect attendance at our events, premium seat sales, sponsorship, advertising
and hospitality spending, concession and souvenir sales, as well as the
financial results of sponsors of our venues, events and the industry. Negative
factors such as challenging economic conditions, public concerns over terrorism
and security incidents, particularly when combined, can impact corporate and
consumer spending, and one negative factor can impact our results more than
another. There can be no assurance that consumer and corporate spending will
not be adversely impacted by current economic conditions, or by any further or
future deterioration in economic conditions, thereby possibly impacting our
operating results and growth.  Loss of our key promoters, management and other personnel
could result in the loss of key tours and negatively impact our business.  The live
music business is uniquely dependent upon personal relationships, as promoters
and executives within the live music companies such as ours leverage their
existing network of relationships with artists, agents and managers in order to
secure the rights to the live music tours and events which are critical to our
success. Due to the importance of those industry contacts to our business, the
loss of any of our promoters, officers or other key personnel could adversely
affect our operations. Although we have entered into long-term agreements with
many of those individuals to protect our interests in those relationships, we
can give no assurance that all or any of these key employees will remain with
us or will retain their associations with key business contacts.


Doing business in foreign countries creates risks not found
in doing business in the United States.  Live
Nations international operations accounted for approximately 35% of its
revenue in 2009. Ticketmasters international operations accounted for
approximately 27% of its revenue in 2009. The risks involved in foreign
operations that could result in losses against which we are not insured
include:  ·exposure to local economic conditions;  ·potential adverse changes in the diplomatic relations
of foreign countries with the United States;  ·restrictions on the withdrawal of foreign investment
and earnings;  ·investment restrictions or requirements on businesses
owned by foreigners;  ·expropriations of property;  ·potential instability of foreign governments;  ·risks of renegotiation or modification of existing
agreements with governmental authorities;  ·diminished ability to legally enforce our contractual
rights in foreign countries;  ·foreign exchange restrictions;  ·withholding and other taxes on remittances and other
payments by subsidiaries; and  ·changes in foreign taxation structures.  In
addition, we may incur substantial tax liabilities if we repatriate any of the
cash generated by our international operations back to the United States due to
significant current limitations on our ability to recognize foreign tax credits
that would be associated with such repatriation. We could repatriate some of
the cash generated by our international operations and use certain of our
substantial net operating losses to offset associated tax liabilities. We are
not currently in a position to recognize any tax assets in the United States
that are the result of payments of income or withholding taxes in foreign
jurisdictions.  Exchange rates may cause fluctuations in our results of
operations that are not related to our operations.  Because
we own assets overseas and derive revenue from our international operations, we
may incur currency translation losses or gains due to changes in the values of
foreign currencies relative to the United States Dollar. We cannot predict the
effect of exchange rate fluctuations upon future operating results. For the
year ended December 31, 2009, Live Nations international operations
accounted for approximately 35% of its revenue. Although we cannot predict the
future relationship between the United States Dollar and the currencies used by
our international businesses, principally the British Pound and the Euro, Live
Nation experienced a foreign exchange rate net loss of $39.9 million in 2009
which had a negative effect on its operating income and, in 2008 and 2007, Live
Nation had net gains of $0.2 million and $3.5 million, respectively, which had
a positive effect on its operating income. See Item 7A. Quantitative and
Qualitative Disclosures about Market Risk. For the year ended December 31,
2009, Ticketmasters international operations accounted for approximately 27%
of its revenue. Although we cannot predict the future relationship between the
United States Dollar and the currencies used by our international businesses,
principally the British Pound, the Canadian Dollar and the Euro, Ticketmaster
experienced foreign exchange rate net losses of $7.2 million and $2.2 million
in 2009 and 2008, respectively, which had a negative effect on its operating
income and, in 2007, Ticketmaster had a net gain of $3.3 million which had a
positive effect on its operating income.  We may enter into future acquisitions and long-term artist
rights arrangements and take certain actions in connection with such
transactions that could affect the price of our common stock.  As
part of our growth strategy, we expect to review acquisition prospects that
would offer growth opportunities. We also may enter into additional long-term
arrangements with certain artists under which we would acquire the rights to
certain music-related activities, including touring, merchandising, recording,
online fan clubs, film/DVD and other rights, or a subset of these rights. In
the event of future acquisitions or artist rights arrangements, we could:  ·use a significant portion of our available cash;  ·issue equity securities, which would dilute current
stockholders percentage ownership;


·incur substantial debt;  ·incur or assume contingent liabilities, known or
unknown;  ·incur amortization expenses related to intangibles;
and  ·incur large accounting write-offs.  Such
actions by us could harm our results from operations and adversely affect the
price of our common stock.  We may be unsuccessful in our future acquisition endeavors,
if any, which may have an adverse effect on our business. Our compliance with
antitrust, competition and other regulations may limit our operations and
future acquisitions.  Our
future growth rate depends in part on our selective acquisition of additional
businesses. A significant portion of our growth has been attributable to
acquisitions, including, among others, our acquisitions of HOB and an equity
interest in AMG. We may be unable to identify other suitable targets for
further acquisition or make further acquisitions at favorable prices. If we
identify a suitable acquisition candidate, our ability to successfully
implement the acquisition would depend on a variety of factors, including our
ability to obtain financing on acceptable terms and requisite government approvals.
Acquisitions involve risks, including those associated with:  ·integrating the operations, financial reporting,
technologies and personnel of acquired companies;  ·managing geographically dispersed operations;  ·the diversion of managements attention from other
business concerns;  ·the inherent risks in entering markets or lines of
business in which we have either limited or no direct experience; and  ·the potential loss of key employees, customers and
strategic partners of acquired companies.  We may
not successfully integrate any businesses or technologies we may acquire in the
future and may not achieve anticipated revenue and cost benefits. Acquisitions
may be expensive, time consuming and may strain our resources. Acquisitions may
not be accretive to our earnings and may negatively impact our results of operations
as a result of, among other things, expenses to pursue the acquisition, the
incurrence of debt, one-time write-offs of goodwill and amortization expenses
of other intangible assets. In addition, future acquisitions that we may pursue
could result in dilutive issuances of equity securities.  We are
also subject to laws and regulations, including those relating to antitrust,
that could significantly affect our ability to expand our business through
acquisitions. For example, the Federal Trade Commission and the Antitrust
Division of the United States Department of Justice with respect to our
domestic acquisitions, and the European Commission (the antitrust regulator of
the European Union) and the United Kingdom Competition Commission with respect
to our European acquisitions, have the authority to challenge our acquisitions
on antitrust grounds before or after the acquisitions are completed. State
agencies may also have standing to challenge these acquisitions under state or
federal antitrust law. Comparable authorities in other jurisdictions also have
the ability to challenge our foreign acquisitions. Our failure to comply with
all applicable laws and regulations could result in, among other things,
regulatory actions or legal proceedings against us, the imposition of fines,
penalties or judgments against us or significant limitations on our activities.
In addition, the regulatory environment in which we operate is subject to
change. New or revised requirements imposed by governmental regulatory authorities
could have adverse effects on us, including increased costs of compliance. We
also may be adversely affected by changes in the interpretation or enforcement
of existing laws and regulations by these governmental authorities.  In
addition, the credit agreement for the senior secured credit facility and the
terms of our subsidiarys redeemable preferred stock restrict our ability to
make acquisitions.  There is the risk of personal injuries and accidents in
connection with our live music events, which could subject us to personal
injury or other claims and increase our expenses, as well as reduce attendance
at our live music events, causing a decrease in our revenue.  There
are inherent risks involved with producing live music events. As a result,
personal injuries and accidents have, and may, occur from time to time, which
could subject us to claims and liabilities for personal injuries.


Incidents in connection
with our live music events at any of our venues or venues that we rent could
also result in claims, reducing operating income or reducing attendance at our
events, causing a decrease in our revenue. We are currently subject to wrongful
death claims, as well as other litigation. While we maintain insurance polices
that provide coverage within limits that are sufficient, in managements
judgment, to protect us from material financial loss for personal injuries
sustained by persons at our venues or accidents in the ordinary course of
business, there can be no assurance that such insurance will be adequate at all
times and in all circumstances.  The success of our ticketing operations depends, in part, on
the integrity of our systems and infrastructures. System interruption and the
lack of integration and redundancy in these systems and infrastructures may
have an adverse impact on our business, financial condition and results of
operations.  The
success of our ticketing operations depends, in part, on our ability to
maintain the integrity of our systems and infrastructures, including websites,
information and related systems, call centers and distribution and fulfillment
facilities. System interruption and the lack of integration and redundancy in
the information systems and infrastructures of our ticketing operations may
adversely affect our ability to operate websites, process and fulfill
transactions, respond to customer inquiries and generally maintain
cost-efficient operations. We may experience occasional system interruptions
that make some or all systems or data unavailable or prevent us from efficiently
providing services or fulfilling orders. We also rely on affiliate and
third-party computer systems, broadband and other communications systems and
service providers in connection with the provision of services generally, as
well as to facilitate, process and fulfill transactions. Any interruptions,
outages or delays in the systems and infrastructures of our business, our
affiliates and/or third parties, or deterioration in the performance of these
systems and infrastructures, could impair the ability of our business to
provide services, fulfill orders and/or process transactions. Fire, flood,
power loss, telecommunications failure, hurricanes, tornadoes, earthquakes,
acts of war or terrorism, acts of God and similar events or disruptions may
damage or interrupt computer, broadband or other communications systems and
infrastructures at any time. Any of these events could cause system
interruption, delays and loss of critical data, and could prevent us from
providing services, fulfilling orders and/or processing transactions. While we
have backup systems for certain aspects of our operations, these systems are
not fully redundant and disaster recovery planning is not sufficient for all
eventualities. In addition, we may not have adequate insurance coverage to
compensate for losses from a major interruption. If any of these adverse events
were to occur, it could adversely affect our business, financial condition and
results of operations.  The processing, storage, use and disclosure of personal data
could give rise to liabilities as a result of governmental regulation,
conflicting legal requirements or differing views of personal privacy rights.  In the
processing of consumer transactions, we receive, transmit and store a large
volume of personally identifiable information and other user data. The sharing,
use, disclosure and protection of this information are governed by the
respective privacy and data security policies maintained by our business.
Moreover, there are federal, state and international laws regarding privacy and
the storing, sharing, use, disclosure and protection of personally identifiable
information and user data. Specifically, personally identifiable information is
increasingly subject to legislation and regulations in numerous jurisdictions around
the world, the intent of which is to protect the privacy of personal
information that is collected, processed and transmitted in or from the
governing jurisdiction. We could be adversely affected if legislation or
regulations are expanded to require changes in business practices or privacy
policies, or if governing jurisdictions interpret or implement their
legislation or regulations in ways that negatively affect our business,
financial condition and results of operations.  We may
also become exposed to potential liabilities as a result of differing views on
the privacy of the consumer and other user data collected by our business. The
failure of us and/or the various third-party vendors and service providers with
which we do business, to comply with applicable privacy policies or federal,
state or similar international laws and regulations or any compromise of
security that results in the unauthorized release of personally identifiable
information or other user data could damage the reputation of our business,
discourage potential users from trying the products and services that we offer
and/or result in fines and/or proceedings by governmental agencies and/or
consumers, one or all of which could adversely affect our business, financial
condition and results of operations.


Costs associated with, and our ability to obtain, adequate
insurance could adversely affect our profitability and financial condition.  Heightened
concerns and challenges regarding property, casualty, liability, business
interruption and other insurance coverage have resulted from terrorist and
related security incidents. As a result, we may experience increased difficulty
obtaining high policy limits of coverage at reasonable costs, including
coverage for acts of terrorism. We have a material investment in property and
equipment at each of our venues, which are generally located near major cities
and which hold events typically attended by a large number of fans. At December 31,
2009, Live Nation had property and equipment with a net book value of approximately
$750.0 million. At December 31, 2009, Ticketmaster had property and
equipment with a net book value of approximately $101.0 million.  These
operational, geographical and situational factors, among others, may result in
significant increases in insurance premium costs and difficulties obtaining
sufficiently high policy limits with deductibles that we believe to be
reasonable. We cannot assure you that future increases in insurance costs and
difficulties obtaining high policy limits will not adversely impact our
profitability, thereby possibly impacting our operating results and growth.  In
addition, we enter into various agreements with artists from time to time,
including long-term artist rights arrangements. The profitability of those
arrangements depends upon those artists willingness and ability to continue
performing, and we may not be able to obtain sufficient insurance coverage at
reasonable costs to adequately protect us against the death, disability or
other failure of such artists to continue engaging in revenue-generating
activities under those agreements.  We
cannot guarantee that our insurance policy coverage limits, including insurance
coverage for property, casualty, liability, artists and business interruption
losses and acts of terrorism, would be adequate under the circumstances should
one or multiple events occur at or near any of our venues, or that our insurers
would have adequate financial resources to sufficiently or fully pay our
related claims or damages. We cannot guarantee that adequate coverage limits
will be available, offered at reasonable costs, or offered by insurers with
sufficient financial soundness. The occurrence of such an incident or incidents
affecting any one or more of our venues could have a material adverse effect on
our financial position and future results of operations if asset damage and/or
company liability were to exceed insurance coverage limits or if an insurer
were unable to sufficiently or fully pay our related claims or damages.  Costs associated with capital improvements could adversely
affect our profitability and liquidity.  Growth
or maintenance of our existing revenue depends in part on consistent investment
in our venues. Therefore, we expect to continue to make substantial capital
improvements in our venues to meet long-term increasing demand, to increase
entertainment value and to increase revenue. We frequently have a number of
significant capital projects underway. Numerous factors, many of which are
beyond our control, may influence the ultimate costs and timing of various
capital improvements at our venues, including:  ·availability of financing on favorable terms;  ·unforeseen changes in design;  ·increases in the cost of construction materials and
labor;  ·additional land acquisition costs;  ·fluctuations in foreign exchange rates;  ·litigation, accidents or natural disasters affecting
the construction site;  ·national or regional economic changes;  ·environmental or hazardous conditions; and  ·undetected soil or land conditions.  The
amount of capital expenditures can vary significantly from year to year. In addition,
actual costs could vary materially from our estimates if the factors listed
above and our assumptions about the quality of materials or workmanship
required or the cost of financing such construction were to change.
Construction is also subject to governmental permitting processes which, if
changed, could materially affect the ultimate cost.


We are subject to extensive governmental regulation, and our
failure to comply with these regulations could adversely affect our business,
results of operations and financial condition.  Our
live music venue operations are subject to federal, state and local laws, both
domestically and internationally, governing matters such as construction,
renovation and operation of our venues, as well as:  ·licensing, permitting and zoning, including noise
ordinances;  ·human health, safety and sanitation requirements;  ·requirements with respect to the service of food and
alcoholic beverages;  ·working conditions, labor, minimum wage and hour,
citizenship and employment laws;  ·compliance with the ADA and the DDA;  ·sales and other taxes and withholding of taxes;  ·privacy laws and protection of personally identifiable
information;  ·historic landmark rules; and  ·environmental protection laws.  We
cannot predict the extent to which any future laws or regulations will impact
our operations. The regulations relating to our food service in our venues are
many and complex. Although we generally contract with a third-party vendor for
these services at our owned and/or operated venues, we cannot assure you that
we or our third-party vendors are in full compliance with all applicable laws
and regulations at all times or that we or our third-party vendors will be able
to comply with any future laws and regulations or that we will not be held
liable for violations by third-party vendors. Furthermore, additional or
amended regulations in this area may significantly increase the cost of
compliance.  We
also serve alcoholic beverages at many of our venues during live music events
and must comply with applicable licensing laws, as well as state and local
service laws, commonly called dram shop statutes. Dram shop statutes generally
prohibit serving alcoholic beverages to certain persons such as an individual
who is intoxicated or a minor. If we violate dram shop laws, we may be liable
to third parties for the acts of the customer. Although we generally hire
outside vendors to provide these services at our operated venues and regularly
sponsor training programs designed to minimize the likelihood of such a
situation, we cannot guarantee that intoxicated or minor customers will not be
served or that liability for their acts will not be imposed on us. We cannot
assure you that additional regulation in this area would not limit our activities
in the future or significantly increase the cost of regulatory compliance. We
must also obtain and comply with the terms of licenses in order to sell
alcoholic beverages in the states in which we serve alcoholic beverages.  From
time to time, governmental bodies have proposed legislation that could have an
effect on our business. For example, some legislatures have proposed laws in
the past that would impose potential liability on us and other promoters and
producers of live music events for entertainment taxes and for incidents that
occur at our events, particularly relating to drugs and alcohol.  We and
our venues are subject to extensive environmental laws and regulations relating
to the use, storage, disposal, emission and release of hazardous and
non-hazardous substances, as well as zoning and noise level restrictions which
may affect, among other things, the hours of operations of our venues.
Additionally, certain laws and regulations could hold us strictly, jointly and
severally responsible for the remediation of hazardous substance contamination
at our facilities or at third-party waste disposal sites, and could hold us
responsible for any personal or property damage related to any contamination.  We face intense competition in the live music, ticketing and
artist services industries, and we may not be able to maintain or increase our
current revenue, which could adversely affect our financial performance.  Our business segments are in highly
competitive industries, and we may not be able to maintain or increase our
current revenue. We compete in the live music industry and within this industry
we compete with other venues to book performers, and, in the markets in which
we promote music concerts, we face competition from other promoters and venue
operators.  Our competitors compete with
us for key employees who have relationships with popular music artists that
have a history of being able to book such artists for concerts and tours.  These competitors


may engage in more
extensive development efforts, undertake more far-reaching marketing campaigns,
adopt more aggressive pricing policies and make more attractive offers to
existing and potential artists. Our competitors may develop services,
advertising options or music venues that are equal or superior to those we
provide or that achieve greater market acceptance and brand recognition than we
achieve. It is possible that new competitors may emerge and rapidly acquire
significant market share.  We compete in the ticketing
industry and the intense competition that we face in the ticketing industry
could cause the volume of our ticketing services business to decline. There can
be no assurance that we will be able to compete successfully in the future with
existing or potential competitors or that competition will not have an adverse
effect on our business and financial condition. We may face direct competition
in the live music industry with our prospective or current primary ticketing
clients, who primarily include live event content providers (such as owners or
operators of live event venues). This direct competition with our prospective
or current primary ticketing clients could result in a decline in the number of
clients we may obtain and a decline in the volume of our ticketing services
business, which could adversely affect our business and financial condition.  Other
variables that could adversely affect our financial performance by, among other
things, leading to decreases in overall revenue, the number of sponsors, event
attendance, ticket prices or profit margins include:  ·an increased level of competition for advertising
dollars, which may lead to lower sponsorships as we attempt to retain
advertisers or which may cause us to lose advertisers to our competitors
offering better programs that we are unable or unwilling to match;  ·unfavorable fluctuations in operating costs, including
increased guarantees to performers, which we may be unwilling or unable to pass
through to our customers via ticket prices;  ·our competitors may offer more favorable terms than we
do in order to obtain agreements for new venues or to obtain events for the
venues they operate;  ·technological changes and innovations that we are
unable to adopt or are late in adopting that offer more attractive
entertainment alternatives than we currently offer, which may lead to reduction
in attendance at live events, a loss of ticket sales or to lower ticket prices;  ·other entertainment options available to our audiences
that we do not offer;  ·unfavorable changes in labor conditions which may
require us to spend more to retain and attract key employees; and  ·unfavorable shifts in population and other
demographics which may cause us to lose audiences as people migrate to markets
where we have a smaller presence, or which may cause sponsors to be unwilling
to pay for sponsorship and advertising opportunities if the general population
shifts into a less desirable age or geographical demographic from an
advertising perspective.  We
believe that barriers to entry into the live music promotion business are low
and that certain local promoters are increasingly expanding the geographic
scope of their operations.  We depend upon unionized labor for the provision of some of
our services and any work stoppages or labor disturbances could disrupt
our business.  The
stagehands at some of our venues and other employees are subject to collective
bargaining agreements. Our union agreements typically have a term of three
years and thus regularly expire and require negotiation in the course of our
business. Upon the expiration of any of our collective bargaining agreements,
however, we may be unable to negotiate new collective bargaining agreements on
terms favorable to us, and our business operations may be interrupted as a
result of labor disputes or difficulties and delays in the process of
renegotiating our collective bargaining agreements. In addition, our business
operations at one or more of our facilities may also be interrupted as a result
of labor disputes by outside unions attempting to unionize a venue even though
we do not have unionized labor at that venue currently. A work stoppage at
one or more of our owned and/or operated venues or at our promoted events could
have a material adverse effect on our business, results of operations and
financial condition. We cannot predict the effect that a potential work stoppage will
have on our expenses.


We are dependent upon our ability to lease, acquire and
develop live music venues, and if we are unable to do so on acceptable terms,
or at all, our results of operations could be adversely affected.  We
require access to venues to generate revenue from live music events. For these
events, we use venues that we own, but we also operate a number of our live
music venues under various agreements which include leases with third parties
or equity or booking agreements, which are agreements where we contract to book
the events at a venue for a specific period of time. Our long-term success in
the live music business will depend in part on the availability of venues, our
ability to lease these venues and our ability to enter into booking agreements
upon their expiration. As many of these agreements are with third parties over
whom we have little or no control, we may be unable to renew these agreements
or enter into new agreements on acceptable terms or at all, and may be unable
to obtain favorable agreements with venues. Our ability to renew these
agreements or obtain new agreements on favorable terms depends on a number of
other factors, many of which are also beyond our control, such as national and
local business conditions and competition from other promoters. If the cost of
renewing these agreements is too high or the terms of any new agreement with a
new venue are unacceptable or incompatible with our existing operations, we may
decide to forego these opportunities. There can be no assurance that we will be
able to renew these agreements on acceptable terms or at all, or that we will
be able to obtain attractive agreements with substitute venues, which could
have a material adverse effect on our results of operations.  We
plan to continue to expand our operations through the development of live music
venues and the expansion of existing live music venues, which poses a number of
risks, including:  ·construction of live music venues may result in cost
overruns, delays or unanticipated expenses; ·desirable sites for live music venues may be
unavailable or costly; and ·the attractiveness of our venue locations may
deteriorate over time.  Additionally,
the market potential of live music venue sites cannot be precisely determined,
and our live music venues may face competition in markets from unexpected
sources. Newly constructed live music venues may not perform up to our
expectations. We face significant competition for potential live music venue
locations and for opportunities to acquire existing live music venues. Because
of this competition, we may be unable to add to or maintain the number of our
live music venues on terms we consider acceptable.  Our revenues depend in part on the promotional success of
our marketing campaigns, and there can be no assurance that such advertising,
promotional and other marketing campaigns will be successful or will generate
revenue or profits.  Similar
to many companies, we spend significant amounts on advertising, promotional and
other marketing campaigns for our live music events and other business
activities. Such marketing activities include, among others, promotion of
ticket sales, premium seat sales, hospitality and other services for our events
and venues and advertising associated with our distribution of related souvenir
merchandise and apparel. During 2009, Live Nation spent approximately 4.3% of
its revenue and Ticketmaster spent approximately 4.4% of its revenue on
marketing, including advertising, and there can be no assurance that such
advertising, promotional and other marketing campaigns will be successful or
will generate revenue or profits.  Poor weather adversely affects attendance at our live music
events, which could negatively impact our financial performance from period to
period.  We
promote many live music events. Weather conditions surrounding these events
affect sales of tickets, concessions and merchandise, among other things. Poor
weather conditions can have a material effect on our results of operations
particularly because we promote a finite number of events. Due to weather
conditions, we may be required to reschedule an event to another available day
or a different venue, which would increase our costs for the event and could
negatively impact the attendance at the event, as well as food, beverage and
merchandise sales. Poor weather can affect current periods as well as
successive events in future periods. If we are unable to reschedule events due
to poor weather, we are forced to refund the ticket revenue for those events.  We may be adversely affected by the occurrence of
extraordinary events, such as terrorist attacks.  The
occurrence and threat of extraordinary events, such as terrorist attacks,
intentional or unintentional mass-casualty incidents, natural disasters or
similar events, may substantially decrease the use of and demand for our
services and the attendance at live music events, which may decrease our
revenue or expose us to substantial liability. The terrorism and security
incidents in the past, military actions in foreign locations, and periodic
elevated terrorism alerts have raised numerous challenging operating factors,
including public concerns regarding air travel,


military actions and
additional national or local catastrophic incidents, causing a nationwide
disruption of commercial and leisure activities.  Following
past terrorism actions, some artists refused to travel or book tours, which
adversely affected our music business. The occurrence or threat of future
terrorist attacks, military actions by the United States, contagious disease
outbreaks, natural disasters such as earthquakes and severe floods or similar
events cannot be predicted, and their occurrence can be expected to negatively
affect the economies of the United States and other foreign countries where we
do business.  Risks Relating to Our Common Stock  We cannot predict the prices at which our common stock may
trade.  Our stock price has fluctuated between
$2.47 and $25.63 over the past three years. The market price of our common
stock may continue to fluctuate significantly due to a number of factors, some
of which may be beyond our control, including:  ·our quarterly or annual earnings, or those of other
companies in our industry;  ·actual or anticipated fluctuations in our operating
results due to the seasonality of our business and other factors related to our
business;  ·our loss or inability to obtain significant popular
artists;  ·changes in accounting standards, policies, guidance,
interpretations or principles;  ·announcements by us or our competitors of significant
contracts, acquisitions or divestitures;  ·the publication by securities analysts of financial
estimates or reports about our business;  ·changes by securities analysts of earnings estimates
or reports, or our inability to meet those estimates or achieve any goals
described in those reports;  ·the disclosure of facts about our business that may
differ from those assumed by securities analysts in preparing their estimates
or reports about our company;  ·the operating and stock price performance of other
comparable companies;  ·overall market fluctuations;  ·the withdrawal of the Tender Offer by LMC Events, LLC;
and  ·general economic conditions.  In
particular, the realization of any of the risks described in these Risk Factors
could have a significant and adverse impact on the market price of our common
stock.  The price of our common stock may fluctuate significantly,
and investors could lose all or part of the value of their common stock.  In
recent years, the stock market has experienced extreme price and volume
fluctuations. This volatility has had a significant impact on the market price
of securities issued by many companies, including companies in our industry.
The changes frequently appear to occur without regard to the operating
performance of these companies. The price of our common stock could fluctuate
based upon factors that have little or nothing to do with our company, and
these fluctuations could materially reduce our stock price.  In the
past, some companies that have had volatile market prices for their securities
have been subject to securities class action suits filed against them. If a
suit were to be filed against us, regardless of the outcome, it could result in
substantial legal costs and a diversion of our managements attention and
resources. This could have a material adverse effect on our business, results
of operations and financial condition.


Our corporate governance documents, rights agreement and
Delaware law may delay or prevent an acquisition of us that stockholders may
consider favorable, which could decrease the value of our common stock.  Our
amended and restated certificate of incorporation and amended and restated
bylaws and Delaware law contain provisions that could make it more difficult
for a third party to acquire us without the consent of our board of directors.
These provisions include restrictions on the ability of our stockholders to
remove directors and supermajority voting requirements for stockholders to
amend our organizational documents, a classified board of directors and
limitations on action by our stockholders by written consent. In addition, our
board of directors has the right to issue preferred stock without stockholder
approval, which could be used to dilute the stock ownership of a potential
hostile acquirer. Delaware law, for instance, also imposes some restrictions on
mergers and other business combinations between any holder of 15% or more of
our outstanding common stock and us. Although we believe these provisions
protect our stockholders from coercive or otherwise unfair takeover tactics and
thereby provide for an opportunity to receive a higher bid by requiring
potential acquirers to negotiate with our board of directors, these provisions
apply even if the offer may be considered beneficial by some stockholders.  Our
amended and restated certificate of incorporation provides that, subject to any
written agreement to the contrary, which agreement does not currently exist,
Clear Channel will have no duty to refrain from engaging in the same or similar
business activities or lines of business as us or doing business with any of
our customers or vendors or employing or otherwise engaging or soliciting any
of our officers, directors or employees. Our amended and restated certificate
of incorporation provides that if Clear Channel acquires knowledge of a
potential transaction or matter which may be a corporate opportunity for both
us and Clear Channel, we will generally renounce our interest in the corporate
opportunity. Our amended and restated certificate of incorporation renounces
any interest or expectancy in such corporate opportunity that will belong to
Clear Channel. Clear Channel will, to the fullest extent permitted by law, have
satisfied its fiduciary duty with respect to such a corporate opportunity and
will not be liable to us or our stockholders for breach of any fiduciary duty
by reason of the fact that it acquires or seeks the corporate opportunity for
itself, directs that corporate opportunity to another person or does not
present that corporate opportunity to us. These provisions could make an
acquisition of us less advantageous to a third party.  We
have also adopted a stockholder rights plan intended to deter hostile or
coercive attempts to acquire us. Under the plan, if any person or group
acquires, or begins a tender or exchange offer that could result in such person
acquiring, 15% or more of our common stock, and in the case of certain Schedule
13G filers, 20% or more of our common stock, and in the case of Liberty Media
and certain of its affiliates, 35% or more of our common stock, without
approval of our board of directors under specified circumstances, our other
stockholders have the right to purchase shares of our common stock, or shares
of the acquiring company, at a substantial discount to the public market price.
Therefore, the plan makes an acquisition much more costly to a potential
acquirer.  In
addition, the terms of our senior secured credit facility provide that the
lenders can require us to repay all outstanding indebtedness upon a change of
control, and the redeemable preferred stock requires one of our subsidiaries to
offer to repurchase the redeemable preferred stock at 101% of the liquidation
preference upon a change of control. These provisions make an acquisition more
costly to a potential acquirer. See Item 7. Managements Discussion and Analysis
of Financial Condition and Results of OperationsLiquidity and Capital
ResourcesRedeemable Preferred Stock.  We have no plans to pay dividends on our common stock, which
could affect its market price.  We
currently intend to retain any future earnings to finance the growth,
development and expansion of our business. Accordingly, we do not intend to
declare or pay any dividends on our common stock for the foreseeable future.
The declaration, payment and amount of future dividends, if any, will be at the
sole discretion of our board of directors after taking into account various
factors, including our financial condition, results of operations, cash flow
from operations, current and anticipated capital requirements and expansion
plans, the income tax laws then in effect and the requirements of Delaware law.
In addition, our redeemable preferred stock and the agreement governing our
senior secured credit facility include restrictions on our ability to pay cash
dividends without meeting certain financial ratios and obtaining the consent of
the lenders. Accordingly, holders of common stock will not receive cash
payments on their investment and the market price may be adversely affected.


Future sales or other issuances of our common stock could
adversely affect its market price.  We
have a large number of shares of common stock outstanding and available for
resale beginning at various points in time in the future. Sales of a
substantial number of shares of our common stock in the public market, or the
possibility that these sales may occur, could cause the market price for our
common stock to decline. As of December 31, 2009, there were 84.4 million
shares of Live Nation common stock outstanding, including 0.7 million shares of
unvested restricted stock awards and excluding treasury shares, 2.1 million
shares of common stock issuable from currently exercisable Live Nation options
at a weighted average exercise price of $17.21 per share and a warrant to
purchase 0.5 million shares of common stock at an exercise price of $13.73. As
of December 31, 2009, there were 57.4 million shares of Ticketmaster
common stock outstanding, excluding treasury shares, and 2.2 million shares of
common stock issuable from currently exercisable Ticketmaster options at a
weighted average exercise price of $29.07 per share. These Ticketmaster
outstanding shares were exchanged for Live Nation common stock and Ticketmaster
options were assumed by Live Nation in connection with the Merger.  We
continually explore acquisition opportunities consistent with our strategy.
These acquisitions may involve the payment of cash, the incurrence of debt or
the issuance of common stock or other securities. Any such issuance could be at
a valuation lower than the trading price of our common stock at the time. The
price of our common stock could also be affected by possible sales of our
common stock by hedging or arbitrage trading activity that may develop
involving our common stock. The hedging or arbitrage could, in turn, affect the
trading prices of the notes.  Conversion of the notes may dilute the ownership interest of
existing stockholders and may affect our per share results and the trading
price of our common stock.  The
issuance of shares of our common stock upon conversion of the notes may dilute
the ownership interests of existing stockholders. Issuances of stock on
conversion may also affect our per share results of operations. Any sales in
the public market of our common stock issuable upon such conversion could
adversely affect prevailing market prices of our common stock.  We can issue preferred stock without stockholder approval,
which could materially adversely affect the rights of common stockholders.  Our
certificate of incorporation authorizes us to issue blank check preferred
stock, the designation, number, voting powers, preferences and rights of which
may be fixed or altered from time to time by our board of directors. Our
subsidiaries may also issue additional shares of preferred stock. Accordingly,
the board of directors has the authority, without stockholder approval, to
issue preferred stock with rights that could materially adversely affect the
voting power or other rights of the common stockholders or the market value of
the common stock.  Risks Relating to Our Separation from
Clear Channel  The Separation could result in significant tax liability to
our initial public stockholders.  Clear
Channel received a private letter ruling from the Internal Revenue Service
substantially to the effect that the distribution of our common stock to its
stockholders qualifies as a tax-free distribution for United States federal
income tax purposes under Sections 355 and 368(a)(1)(D) of the Code.
Although a private letter ruling from the Internal Revenue Service generally is
binding on the Internal Revenue Service, if the factual representations or
assumptions made in the letter ruling request are untrue or incomplete in any
material respect, we will not be able to rely on the ruling.  Furthermore,
the Internal Revenue Service will not rule on whether a distribution
satisfies certain requirements necessary to obtain tax-free treatment under Section 355
of the Code. Rather, the ruling is based upon representations by Clear Channel
that these conditions have been satisfied, and any inaccuracy in such
representations could invalidate the ruling. Therefore, in addition to
obtaining the ruling from the Internal Revenue Service, Clear Channel made it a
condition to the Separation that Clear Channel obtain a legal opinion that the
Distribution will qualify as a tax-free distribution for United States federal
income tax purposes under Sections 355 and 368(a)(1)(D) of the Code. The
opinion relies on the ruling as to matters covered by the ruling. In addition,
the opinion is based on, among other things, certain assumptions and
representations as to factual matters made by Clear Channel and us, which if
incorrect or inaccurate in any material respect would jeopardize the
conclusions reached by


counsel in its opinion.
The opinion is not binding on the Internal Revenue Service or the courts, and
the Internal Revenue Service or the courts may not agree with the opinion.  Notwithstanding
receipt by Clear Channel of the ruling and opinion of counsel, the Internal
Revenue Service could assert that the Distribution does not qualify for
tax-free treatment for United States federal income tax purposes. If the
Internal Revenue Service were successful in taking this position, our initial
public stockholders could be subject to significant United States federal income
tax liability. In general, our initial public stockholders could be subject to
tax as if they had received a taxable distribution equal to the fair market
value of our common stock that was distributed to them.  The Separation could result in significant tax-related
liabilities to us.  As
discussed above, notwithstanding receipt by Clear Channel of the ruling and the
opinion of counsel, the Internal Revenue Service could assert that the
Distribution does not qualify for tax-free treatment for United States federal
income tax purposes. If the Internal Revenue Service were successful in taking
this position, Clear Channel could be subject to a significant United States
federal income tax liability. In general, Clear Channel would be subject to tax
as if it had sold the common stock of our company in a taxable sale for its
fair market value. In addition, even if the Distribution otherwise were to
qualify under Section 355 of the Code, it may be taxable to Clear Channel
as if it had sold the common stock of our company in a taxable sale for its
fair market value under Section 355(e) of the Code, if the
Distribution were later deemed to be part of a plan (or series of related
transactions) pursuant to which one or more persons acquire directly or
indirectly stock representing a 50% or greater interest in Clear Channel or us.
For this purpose, any acquisitions of Clear Channel stock or of our stock
within the period beginning two years before the Distribution and ending two
years after the Distribution are presumed to be part of such a plan, although
we or Clear Channel may be able to rebut that presumption.  Although
such corporate-level taxes, if any, resulting from a taxable distribution
generally would be imposed on Clear Channel, we have agreed in the tax matters
agreement to indemnify Clear Channel and its affiliates against tax-related
liabilities, if any, caused by the failure of the Separation to qualify as a
tax-free transaction under Section 355 of the Code (including as a result
of Section 355(e) of the Code) if the failure to so qualify is
attributable to actions, events or transactions relating to our stock, assets
or business, or a breach of the relevant representations or covenants made by
us in the tax matters agreement. If the failure of the Separation to qualify
under Section 355 of the Code is for any reason for which neither we nor
Clear Channel is responsible, we and Clear Channel have agreed in the tax
matters agreement that we will each be responsible for 50% of the tax-related
liabilities arising from the failure to so qualify. Clear Channel reported a
$2.4 billion capital loss as a result of the Separation. See Item 8.
Financial Statements and Supplementary DataNote 12Related-Party
TransactionsRelationship with Clear Channel for a more detailed discussion of
the tax matters agreement between Clear Channel and us.  We could be liable for income taxes owed by Clear Channel.  Each
member of the Clear Channel consolidated group, which includes Clear Channel,
our company and our subsidiaries through December 21, 2005, and Clear
Channels other subsidiaries, is jointly and severally liable for the United
States federal income tax liability of each other member of the consolidated
group. Consequently, we could be liable in the event any such liability is
incurred, and not discharged, by any other member of the Clear Channel
consolidated group. Disputes or assessments could arise during future audits by
the Internal Revenue Service in amounts that we cannot quantify. In addition,
Clear Channel has recognized a capital loss for United States federal income
tax purposes in connection with the Separation. If Clear Channel is unable to
deduct such capital loss for United States federal income tax purposes as a
result of any action we take following the Separation or our breach of a
relevant representation or covenant made by us in the tax matters agreement, we
have agreed in the tax matters agreement to indemnify Clear Channel for the
lost tax benefits that Clear Channel would have otherwise realized if it were
able to deduct this loss. See Item 8. Financial Statements and
Supplementary DataNote 12Related-Party TransactionsRelationship with Clear
Channel.


Risks Relating to Our Merger with
Ticketmaster  The Merger resulted in changes to our board and management
that may affect our strategy.  Upon
completion of the Merger, the composition of our board of directors and
management team changed in accordance with the merger agreement, as seven new
members from Ticketmaster were appointed to our board. In addition, we have a
new Executive Chairman. This new board and management may affect the business
strategy and operating decisions of the combined company.  Although we expect that the
Merger will result in benefits to Live Nation, we may not realize those benefits
because of integration difficulties and other challenges.  The
Merger involves the integration of two companies that have previously operated
independently with principal offices in two locations. Due to legal
restrictions, we have conducted only limited planning regarding the integration
of the two companies. The combined company will be required to devote
significant management attention and resources to integrating the two
companies. The success of the combination of Live Nation and Ticketmaster will
be dependent in large part on the success of our management in integrating the
operations, technologies and personnel of the two companies.  Our
failure to meet the challenges involved in successfully completing the
integration of the operations of Live Nation and Ticketmaster or to otherwise
realize any of the anticipated benefits of the Merger, including additional
revenue opportunities, could impair our results of operations.  Challenges
involved in this integration include, without limitation:  ·integrating successfully each companys
operations, technologies, products and services;  ·reducing the costs associated with
operations; and  ·combining the corporate cultures,
maintaining employee morale and retaining key employees.  We may
not successfully complete the integration of the operations in a timely manner
and we may not realize the anticipated benefits or synergies of the Merger to
the extent, or in the timeframe, anticipated. The anticipated benefits and
synergies include cost savings associated with anticipated restructurings and
other operational efficiencies, and revenue enhancement opportunities. However,
these anticipated benefits and synergies assume a successful integration and
are based on projections, which are inherently uncertain, and other
assumptions. Even if integration is successful, anticipated benefits and
synergies may not be achieved.  In connection with the Merger, we
became subject to a proposed Final Judgment imposing certain obligations on us,
and, in addition, the DOJ or the U.S. District Court may seek to modify the
terms of the proposed Final Judgment before it is entered as final and any such
changes could negatively impact the Companys business.  On January 25,
2010, the United States Department of Justice (the DOJ) and several State
Attorneys General jointly filed with the United States District Court for the
District of Columbia a Complaint against the proposed merger between Live
Nation and Ticketmaster and a proposed Final Judgment (the proposed Final
Judgment) that imposes certain obligations on us in order to address the
issues the DOJ raised in its complaint. 
Among other things, the proposed Final Judgment requires us to offer a
license to the Ticketmaster host ticketing technology to Anschutz Entertainment
Group, to divest Ticketmasters Paciolan ticketing business to a DOJ-approved
purchaser within 60 days, to agree to abide by certain behavioral remedies that
prevent us from engaging in retaliatory business tactics or improper trying
arrangements and to provide periodic reports to the DOJ about our compliance
with the proposed Final Judgment.  The
proposed Final Judgment is subject to a 60-day public comment period, after
which time the court may enter the Final Judgment as written, or it may modify
the order.  The Final Judgment will be in
effect and will bind us for ten years from the date that the court enters
it.  We stipulated to an interim Hold
Separate order on January 25, 2010 that commits us to complying with the
terms of the proposed Final Judgment until a Final Judgment is entered by the
court.  During
the duration of the Final Judgment, we will be restricted from engaging in
certain business activities that, absent the Final Judgment, would be lawful
for us to undertake. Our inability to undertake these business strategies could
disadvantage us when we compete against firms that are not restricted by any
such order.  Our compliance with the
Final Judgment therefore creates certain unquantifiable business risks for us.


Also
on January 25, 2010, we entered into a Consent Agreement (the Canadian
Consent Agreement) with the Canadian Competition Commission, which had the
effect of imposing essentially the same terms as the proposed Final Judgment on
our business in Canada.  The Canadian
Consent Agreement will remain in effect for ten years following the date of the
agreement.  The Canadian Consent
Agreement creates similar risks for us, both in terms of creating potential
enforcement actions and in limiting us from pursuing certain business
practices.  The terms of Live Nation
Worldwides agreement with CTS will cause Live Nation Worldwide to incur
ongoing costs and could reduce operational efficiencies that the combined
company might otherwise obtain through the Merger.  Live
Nation Worldwide, Inc., which is referred to as Live Nation Worldwide, and
CTS Eventim AG, which is referred to as CTS, are parties to an agreement, which
is referred to as the CTS agreement, pursuant to which CTS licenses
intellectual property to Live Nation Worldwide that is core to Live Nations
in-house ticketing platform. Under the terms of the CTS agreement, Live Nation
Worldwide will be required to take actions and incur expenses, and may be
limited in actions it can take, which could limit the ability of Live Nation
and Ticketmaster to fully integrate their ticketing platforms successfully and
realize the full operational efficiencies that the combined company might
otherwise obtain through the Merger. For events in North America, CTS will be
generally entitled to receive, during the 10-year term of the agreement, a per
ticket license fee upon the sale of certain tickets that Live Nation Worldwide
or any of substantially all of its subsidiaries, which are collectively
referred to as the Live Nation Worldwide entities, have the right to
distribute. This per ticket fee for events in North America will be payable to
CTS regardless of whether the combined company chooses to use the CTS ticketing
platform, Ticketmasters ticketing platform or another ticketing platform for
the sale of tickets that the Live Nation Worldwide entities have the right to
distribute. In addition, for events in certain European countries outside of
the United Kingdom, Live Nation Worldwide generally will be required, during a
10-year term, to exclusively book on the CTS ticketing platform all tickets
that the Live Nation Worldwide entities have the right to distribute (or, to
the extent other ticketing platforms are used, Live Nation Worldwide will
generally be required to pay to CTS the same fee that would have been payable
had the CTS platform been used). For events in the United Kingdom, Live Nation
Worldwide will be required, provided that CTS first satisfies a significant
threshold commitment, to offer for sale on the CTS UK website and pay a
corresponding fee for a portion of the tickets that the Live Nation Worldwide
entities have the right to distribute for events promoted by the Live Nation
Worldwide entities for a 10-year term commencing on January 1, 2010.
Finally, the Live Nation Worldwide entities may be precluded from offering
ticketing services to third parties in certain European countries during the
term of the CTS agreement. In addition, upon completion of the Merger, for a
period of two years thereafter, CTS will have the right to terminate the CTS
agreement upon six months advance notice.