LIVE Nation and the Isle of Wight Festival have remained tight-lipped after it was revealed the Competition and Markets Authority was considering looking into a deal between the organisations.
The government watchdog is looking into whether Live Nation purchase of a controlling stake in Isle of Wight Festival would "result in a substantial lessening of competition" in the UK.
When approached for a response by the Isle of Wight County Press, festival boss John Giddings referred the enquiry to Live Nation, who have since declined to comment.
The US entertainment giant became the Isle of Wight Festival's main shareholder in March through LN-Gaiety, Live Nation's joint UK venture with music mogul Denis Desmond's Gaiety Investments.
Live Nation is already involved in over 85 music festivals worldwide, including UK festivals such as Reading, Leeds, Wireless, Creamfields and T in the Park. 
The CMA has asked Live Nation and the Isle of Wight Festival to operate separately until the deal is approved by the watchdog.
Mr Giddings, who will stay in his leadership role, previously said: "We have been looking at how we can elevate and take the Isle of Wight Festival to the next level. 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."
The Isle of Wight Festival marks Live Nation's sixth deal this year.