SFX Entertainment Inc. will buy The Marquee Group (TMG)
in an all-stock deal valued at around $100M, according to
Jill Goldsmith of the HOLLYWOOD REPORTER. An acquisition
"was expected" because the two companies "have been working
on a deal for several months," and SFX Chair & CEO Robert
Sillerman is also TMG Chair and owned 9% of the company.
One analyst: "It's like negotiating with yourself across the
table." The deal calls for SFX to offer $6 worth of its
shares for every one share of TMG, subject to adjustment.
According to yesterday's announcement, TMG senior management
will enter into new employment contracts with SFX. Both
boards of directors have approved the deal which is expected
to close sometime this year (HOLLYWOOD REPORTER, 7/24). In
N.Y., Phyllis Furman reports that TMG CEO Bob Gutkowski "is
expected to remain with the company" (DAILY NEWS, 7/24).
SFX shares fell yesterday $2.65 to close at $49 on the
NASDAQ, while shares of TMG dropped 7.4% to close at $5.50
on the American Stock Exchange (WALL STREET JOURNAL, 7/24).
