Live Nation and StubHub shares drop on UK ticket resale ban report

Investing.com -- Live Nation Entertainment (NYSE:LYV) stock fell 2.2% and StubHub Holdings (NYSE:STUB) shares tumbled 6% following a Financial Times report that the UK plans to ban the resale of tickets for live events above their original cost.

The reported regulatory move represents an aggressive crackdown on ticket touts and resellers in the British market. According to the Financial Times, UK ministers are preparing legislation that would prohibit selling tickets at prices higher than their face value.

The potential ban could significantly impact StubHub’s business model, which operates as a ticket resale marketplace where prices often exceed original costs. This explains the company’s steeper stock decline compared to Live Nation, which primarily sells tickets directly through its Ticketmaster subsidiary but also operates in the secondary market.

The UK would not be the first country to implement such restrictions. Several European nations already have regulations limiting ticket resale prices, though the enforcement and scope of these rules vary by jurisdiction.

Neither company has publicly commented on the report or provided estimates of how such legislation might affect their UK operations and overall financial performance.

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