The Isle of Wight Festival will be taken over by Live Nation, as approved by the Competition and Markets Authority (CMA).
As part of a new investment agreement via LN-Gaiety, Live Nation will have a major stake in the festival, working alongside promoter John Giddings and his Solo Music Agency, who will continue to lead the event.
As part of its investigation, the CMA consulted a range of experts, organisers of other live music events and festivalgoers.
It assessed whether the merger would enable Live Nation to stop rival organisers from booking "the range and quality of artists that they need to provide a competitive proposition", concluding that a sufficient range and quality of artist would still be available for rival live music organisers.
Live Nation has the largest platform of festivals in the world, with more than 86 festivals in its global portfolio such as Download, Lollapalooza, Reading & Leeds, Way Out West, Rock Werchter, Splendour Festival Australia, Bonnaroo, Austin City Limits and Governor's Ball.
“After 15 hugely successful and glorious years, we have been looking at how we can elevate and take the Isle Of Wight Festival to the next level," said Giddings. "This partnership with Live Nation will give us the ability to access the company’s scale and talent pool, bringing more acts and a better experience to the UK."
Since its rebirth in 2002, the festival has hosted acts such as The Rolling Stones, The Who, David Bowie, Muse, Foo Fighters, Bruce Springsteen, Paul McCartney, Pearl Jam, Kasabian, The Stone Roses, Red Hot Chili Peppers, Amy Winehouse, Kings of Leon, Jay Z, The Strokes, Coldplay, The Sex Pistols, The Police, Blondie and Biffy Clyro.
A longer version of this story first appeared on Music Week.
More from PSNEurope