The relationship between Live Nation and Ticketmaster seems to be over; opening the door for the world's largest concert venue operator and promoter to launch its own ticketing operation.

Ticketmaster said in an internal memo late Wednesday that a new deal between the two industry leaders is "doubtful."

"We believe we've taken every reasonable step possible to facilitate a renewal, but they seem intent on a direction for their business that leaves us no viable way to work together," the memo said.

The current deal, which allows West Hollywood-based Ticketmaset to sell tickets for Beverly Hills-based Live Nation's 160 venues, ends next year a separate deal with House of Blues, which Live Nation acquired last summer, ends in 2009.

Live Nation accounts for about 17 percent of Ticketmaster's domestic business which is about $100 million.

This comes two weeks after Live Nation reported solid second-quarter earnings, posting a 2 percent hike in profit bolstered by a 34 percent jump in sales.

Ticketmaster is owned by IAC/InterActiveCorp, which is controlled by billionaire Barry Diller.

Shreas in Live Nation were up 52 cents, or 2.6 percent, to $20.76 in morning trading Thursday on the New York Stock Exchange.

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