Shares of SFX Entertainment "shot up" 10% last Friday,
after a report in Business Week indicated that CBS "was
interested in buying out" the company, according to Allyson
Lieberman of the N.Y. POST. But SFX issued "a tersely-
written statement claiming there is no truth to the report."
SFX stated, "SFX firmly denies that it is in any negotiation
whatsoever with CBS or any of its related companies on any
transaction involving either an investment in SFX or a
combination with SFX." SFX shares were up $3.31 Friday to
close at $35.13 (N.Y. POST, 2/26). BUSINESS WEEK quoted an
investment banker who stated that SFX "has been in informal
talks with some CBS executives" (BUSINESS WEEK, 3/6 issue).
SFX STEPS UP: In N.Y., Richard Sandomir profiled SFX's
recent acquisitions and wrote that the company has acquired
agencies that represent 16% of all MLB players and 22% of
all NBA players. Overall, SFX's Sports Group "generated"
$1.2B in revenues through the first nine months of '99. SFX
Sports Group President Bill Allard said that the company has
"acquired all we need in basketball and baseball" and that
football and hockey agencies "are on deck." Sandomir noted
that SFX's "rapid growth signifies the frenzy to combine
product and distribution in a global communications market
increasingly dominated by the Internet" (N.Y. TIMES, 2/27).
BRIDGE NEWS' Jennifer Allen profiled SFX and quoted Robinson
Stephens analyst Harry Curtis as saying that SFX's goal is
"to build relationships on the sports and entertainment side
to create content" for Internet ventures because "it's
something that no one else is doing" (BRIDGE NEWS, 2/26).
