From the Wall Street Journal's Ethan Smith (hat tip to none other than the Lefsetz email):

Ticketmaster Entertainment Inc. and Live Nation Inc. are close to a merger, people familiar with the matter said, in a deal that would consolidate two of the most powerful forces in the music industry under one roof.

The newly created company would be called Live Nation Ticketmaster, and would combine the world's biggest concert promoter with the world's dominant ticketing and artist-management company. The combined firm would be able to take advantage of close relationships with hundreds of major artists to find new ways to do business in the ailing music industry.

The boards of both companies have yet to approve any merger, these people said, and sticking points remain. One potential hitch: Because the merger would concentrate so much power in the music industry under one company it would require review by antitrust authorities. Nonetheless, the deal, which would not entail an exchange of cash, could be announced as early as next week.

If regulators could stomach Ticketmaster's market dominance before Live Nation got into ticketing, it should be able to withstand this merger.