S&P Global Ratings has downgraded Live Nation's outlook from stable to negative following the Department of Justice's antitrust lawsuit, which seeks to separate Ticketmaster from Live Nation.

The credit rating agency cites potential financial costs, regulatory scrutiny, and business disruption as key concerns. S&P views Ticketmaster as a core component of Live Nation's competitive advantage, considering the lawsuit "a significant threat to the business."

Despite the outlook change, S&P has maintained all existing Live Nation credit ratings, including:

• BB- issuer rating
• BB rating on senior secured debt
• B+ rating on unsecured debt

The market response has remained relatively stable, with Live Nation stock (NYSE: LYV) trading around $93.50 per share, showing:

• Minimal weekly decline
• Modest gains since 2024's start
• 17% increase from May 2023

Roth MKM analyst Eric Handler maintains a contrasting view, keeping a buy rating with a $120 target price. Handler suggests the lawsuit "will have difficulty in succeeding" and expects any potential remedies won't significantly transform the business.

Live Nation faces additional challenges, including a reported Ticketmaster hack and related class action litigation. The company plans to "vigorously fight" the lawsuit while remaining open to discussing certain remedies.

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