The LA Times reports that Live Nation just signed a 20 year lease to opearate the Hollywood Palladium. They'll be dumping "millions" of dollars into the place to restore it. According to the Times, Live Nation currently operates the House of Blues on Sunset, the Wiltern and Verizon Wireless in Irvine. They also do a lot of shows at the Avalon.
I haven't been to the Palladium recently, and I honestly don't remember ever having a good time there. The last two times I was there was for a Black Flag reunion show in 2003 and a Gorrillaz show in 2002. I remember it being very cold, having shitty sound and a gymnasium vibe. Hopefully Live Nation can fix it without going too overboard and forcing ticket prices too high.
The capacity of the place is about 4,000 which puts it between the Wiltern (2,300) and the Greek (5,800). A lot of the bands that used to do two nights at the Wiltern will probably now do one night at the Palladium. Some of those random shows that pop up at the Santa Monica Civic Auditorium might also go to the new Palladium.
Look for the all new Palladium in September 2008.