Paid Content reports that Ticketmaster and Live Nation have announced plans for a merger. The deal is a tax-free, all stock merger with a combined value of approximately $2.5 billion, and the new entity will be called Live Nation Entertainment.

Together, the two firms will have significant control over live music in North America. Live Nation is a significant concert promoter and Ticket Master remains the dominant ticketing service. The deal is subject to regulatory approval and represents another difficult situation for the major record labels.