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SFX to Acquire Marquee Group for $100 Million

July 24, 1998|From Associated Press

NEW YORK — SFX Entertainment Inc., the concert promoter that acquired Los Angeles-based Avalon Attractions and sports agent David Falk's firm earlier this year, is buying the sports marketer Marquee Group for about $100 million in stock.

Marquee Group, founded in late 1995 by a former top executive of the Madison Square Garden operation, manages sports events, represents athletes and broadcasters and produces TV sports programs.

SFX Entertainment Executive Chairman Robert F.X. Sillerman said Thursday that Marquee broadens his company's involvement in sports and provides it with access to more corporate clients.

Robert Gutkowski, Marquee's president and chief executive, said the deal would give Marquee added resources for expansion. He founded Marquee with Sillerman's support in 1995. Sillerman already was Marquee's chairman; he and SFX owned 9% of the firm's stock.

SFX, which was spun off from a radio station company earlier this year, is a leading operator of sites for music concerts and other live performances.

Under the deal, Marquee shareholders would get SFX stock worth $6 for each Marquee share. The deal has been approved by the boards of both companies but is subject to regulatory clearance and to approval by Marquee shareholders. The companies expect to complete the deal this year.

In trading on the Nasdaq Stock Market, SFX closed down $2.63 a share at $49. Marquee Group closed down 44 cents a share at $5.50 on the American Stock Exchange.

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