Cablevision Systems boss James Dolan found himself doing damage control yesterday after suggesting earlier in the day that he’d consider dumping Barry Diller’s Ticketmaster as his company’s ticket provider.
In an interview yesterday morning at a Goldman Sachs conference in New York, Dolan said that the company’s existing ticketing deal with Ticketmaster had expired and that he wouldn’t rule out working with rival Live Nation.
“They certainly look like they are going to be a provider, so yes,” Dolan said in response to a question as to whether he would consider turning ticketing for Madison Square Garden and Cablevision’s other venues over to Live Nation, which launches its ticketing business in January.
The comments sent shares in Live Nation surging 21 percent, or $2.82, to $16.82.
However, late in the day Cablevision issued a statement, which Ticketmaster was quick to distribute, clarifying that Ticketmaster remained in place as its ticket provider, and Cablevision planned to renew the relationship.
“Madison Square Garden has enjoyed a long and mutually beneficial relationship with Ticketmaster. We have been in conversations and expect to extend that relationship and we have no current plans to do anything otherwise,” Dolan stated.
Shares in Ticketmaster, which was recently spun off from IAC, and counts Diller as its chairman, closed up 34 cents, or nearly 3 percent, yesterday at $13.09.
Ticketmaster’s stock is down 30 percent over the last week following news that Live Nation poached much of the future ticketing business of venue operator SMG – one of Ticketmaster’s biggest clients after Live Nation.
Shares in Cablevision closed down nearly 2 percent, or 49 cents, to $25.39.
Meanwhile the mojo in Cablevision’s stock, which spiked in late July after Dolan said the company was exploring strategic alternatives, has waned in recent weeks, dropping more than 21 percent over the last month.
And Dolan acknowledged yesterday that selling assets would be tough to do in the current financial climate.