Diller plans to resign as chairman of Live Nation Entertainment

Barry Diller said he plans to resign as chairman of Live Nation Entertainment Inc., eight months after a merger that combined the world’s largest concert promoter and ticketing companies.

Diller said in a statement that while there is “no rush,” he told board members Tuesday that they should start the process to appoint a new chairman.

Live Nation has faced a disappointing summer concert season in North America with acts such as U2 postponing shows, and its stock plunged 21 percent over two days in July after Chief Executive Michael Rapino said growth had slowed. The company was created in January by the merger of Ticketmaster Entertainment, the world’s largest ticketing company, and Live Nation Inc., the biggest concert promoter and artist-management company.

“I have always said, since the merger of Ticketmaster and Live Nation, that I only planned to stay as chairman through the transition and integration of the two companies,” Diller said in the statement.

His departure will take effect at the next board meeting, said a person familiar with the matter, who asked not to be identified because the decision isn’t public. The timing of the next meeting isn’t clear, the person said.

Shares of Live Nation, based in Beverly Hills, gained 1 cent to $9.85 Tuesday. The shares have fallen 28 percent in the past six months.

Diller, 68, was chairman of Ticketmaster and became chairman of the merged company. Diller is also chairman and CEO of IAC/InterActiveCorp. Ticketmaster CEO Irving Azoff was appointed executive chairman and CEO of the Front Line artist- management unit. Rapino, who was CEO at Live Nation, kept that title at the new company.

John Malone’s Liberty Media Corp. is the largest shareholder of Live Nation Entertainment, with a 14 percent stake, according to data compiled by Bloomberg. Liberty CEO Greg Maffei expressed confidence in Live Nation’s management at an investor conference last week.

In May, U2 postponed the North American leg of its tour after singer Bono had emergency back surgery. The shows have been rescheduled for spring and summer of 2011.

Hollywood Reporter, which reported Diller’s resignation earlier, cited unidentified people as saying there was a clash between the executive and other board members over control of the company.