Isle of Wight festival takeover could face competition probe

A takeover of the Isle of Wight festival involving US entertainment giant Live Nation is facing a possible probe by competition authorities.

Live Nation became the majority shareholder in the Isle of Wight Festival in March through LN-Gaiety, its UK joint venture with music mogul Denis Desmond's Gaiety Investments.

It already has a portfolio of more than 85 music festivals worldwide including Reading, Leeds, Wireless and T in the Park.

The Competition and Markets Authority (CMA) said it was looking at launching an investigation into whether the move would lead to a "substantial lessening of competition".

The Isle of Wight Festival - revived in 2002, decades after it was famously headlined by Jimi Hendrix in 1970 - is expected to attract 42,000 revellers this summer.

Acts lined up to appear include David Guetta, Sir Rod Stewart and The Pretenders.

The CMA has not yet set a date for consultation submissions or its decision, but has asked Live Nation and the Isle of Wight Festival to operate separately until it gives the merger the green light.

Live Nation has been on a buying spree recently, making eight major acquisitions worldwide in 2016, while the Isle of Wight Festival deal marked its sixth so far this year.