Suit to Block Merger of Music Venues Filed

As expected, the U.S. Justice Department filed its antitrust lawsuit Thursday to block the planned merger of Orange County’s two biggest concert venues, the Pacific Amphitheatre and Irvine Meadows Amphitheatre, contending that the move would create an illegal monopoly.

The Justice Department sought a temporary restraining order halting the merger, which originally was to have been consummated on Friday, but the judge assigned to the case was not available to hear it Thursday. It was not immediately known if another hearing date was set. The suit was filed in U.S. District Court in Los Angeles.

The proposal under attack would combine the assets and operations of the two venues under a single limited partnership. The current Pacific Amphitheatre partners would own a 50% interest in the new entity and would operate both facilities, the lawsuit said. The current Irvine Meadows partners would hold a 25% interest, and Ogden Corp., a national concessionaire, would own the remaining 25% interest in exchange for $8 million, the suit said.

Justice officials said the merger would eliminate or lessen “actual and potential” competition between concert venues in Orange County. As a result, artists could be paid less for performing at the two facilities and concert-goers could have to pay higher prices and have fewer concerts to choose from, the lawsuit said.

The 18,765-capacity Pacific currently of owned and booked exclusively by the New York-based Nederlander Organization. The 15,000-capacity Irvine Meadows facility is owned by a consortium of private investors and has an exclusive booking arrangement with Avalon Attractions, the Southland’s largest independent concert promoter.