SFX Entertainment to Acquire Livent Assets

SFX Entertainment on Tuesday announced a deal to acquire most of the theaters and ongoing productions of Livent Inc., but said it will move away from the financially ailing company’s role of producing original Broadway musicals.

Instead, SFX, which controls 82 live venues, including 16 amphitheaters, across the country, will continue to focus on touring shows and concert promotions and expects to maintain its busy pace of acquisitions over the next six to nine months, Executive Chairman Robert F.X. Sillerman said in an interview.

“While we do regularly invest in many shows, we do so to help feed our pipeline, which is principally the out-of-town circuit,” said Sillerman, who calls SFX the world’s largest producer of live entertainment events. “While we will continue that, people should not be expecting us to . . . perpetuate the Livent methodology, which was to source and to create new first-run musicals.”

That methodology did not work well for Toronto-based Livent, which filed for bankruptcy protection from creditors in November after its new owners, including Hollywood talent agent Mike Ovitz, accused founders Garth Dabrinsky and Myron Gottlieb of massive fraud, which they deny. Creditors are owed more than $200 million, and Ovitz is sure to lose most of his $20-million investment.

Current Broadway shows produced by Livent include “Ragtime,” which is among musicals that New York-based SFX took on tour, and “Fosse.” Livent is also preparing “Seussical,” based on the Dr. Seuss books, which Sillerman expects to be ready for launch about the time the deal to buy Livent is scheduled to close in late September. Sillerman said he is not sure what will happen with “The Sweet Smell of Success,” another show Livent is working on.

Under the deal, which is subject to Bankruptcy Court approval, SFX would acquire the Ford Center for the Performing Arts in New York and theaters in Chicago and Toronto. SFX would pay more than $100 million, the bulk of which would be in cash and the remainder in warrants giving rights to SFX stock, sources said.

SFX Entertainment shares rose $1.56 to close at $56 on Nasdaq. Livent shares fell 2 cents to close at 5 cents on the Toronto Stock Exchange.