LV promoter buys entertainment firm

Thursday, June 3, 1999 | 10:57 a.m.

SFX Entertainment of New York, the nation's largest live entertainment company, announced it was purchasing many of the assets of the financially and legally troubled Livent Inc.

Although details of the deal weren't released, company executives have placed the value of the transaction at about $100 million in cash and stock.

SFX owns or leases 82 live entertainment venues -- including 16 amphitheaters in the top 10 markets -- across the nation.

An SFX division, SFX Live, is bringing nine special events to Las Vegas under a three-year, $6.75 million contract with the Las Vegas Convention and Visitors Authority. With the Livent acquisition, SFX gains three theaters: the two Ford Centers for Performing Arts in New York and Chicago, as well as the Pantages Theatre in Toronto. It will also acquire the rights to the current Broadway productions of "Fosse, Ragtime" and the Canadian production of "Phantom of the Opera."

"SFX is uniquely qualified to buy these assets, manage these assets and integrate them and not unduly burden its balance sheet," says Bishop Cheen, analyst with First Union Capital Markets.

The sale will require the approval of bankruptcy courts in the United States and Canada. If approved, it is expected to close by Sept. 30.

Canada-based Livent filed for bankruptcy last November after its founders, Garth Drabinsky and Myron Gottlieb, were hit in the United States with federal stock fraud and conspiracy charges.

Livent, with 18 Tony awards, had been a star producer of Broadway shows. While under bankruptcy reorganization, the company has continued to develop shows.

It has a musical based on the characters from Dr. Seuss, planned to open next spring. It's also working on a musical version of the "Sweet Smell of Success" and a rewritten revival of "Pal Joey," both also for next season. These projects are not part of the sale.

Most industry insiders applauded the move, saying it gives the Livent productions and theaters a home.

"There may be a concern among those people who are here that someone new is moving in. But I don't think that fear will lead to widespread resistance," says David Sheward, president of the Drama Desk.

SFX chairman Robert Sillerman says although his company is acquiring the theaters and Broadway show production rights, he doesn't plan to produce any shows. "It is not the appropriate business for us," he said.