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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (date of earliest event reported) June 22, 1999
SFX ENTERTAINMENT, INC.
(Exact name of registrant as specified in its charter)
DELAWARE 0-24017 13-3977880
(State or other jurisdiction (Commission (I.R.S. Employer
of incorporation) File No.) Identification No.)
650 MADISON AVENUE
16TH FLOOR
NEW YORK, NEW YORK 10022
(Address, including zip code, of principal executive offices)
REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE: (212) 838-3100
No Change
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(Former name or former address, if changed since last report.)
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SFX ENTERTAINMENT, INC.
ITEM 5. OTHER EVENTS.
Reference is made to the press release of SFX Entertainment, Inc.
("SFX"), dated June 17, 1999, attached hereto as Exhibit 99.1 and incorporated
by reference.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS.
C. Exhibits.
Description Exhibit
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Press Release dated June 17, 1999 99.1
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
SFX ENTERTAINMENT, INC.
Dated: June 21, 1999 By: /s/ Howard J. Tytel
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Name: Howard J. Tytel
Title: Executive Vice President,
General Counsel and Member of
the Office of the Chairman
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EXHIBIT INDEX
Description Exhibit
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Press Release dated June 17, 1999 99.1
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Exhibit 99.1
PRESS RELEASE
NEW YORK--(BUSINESS WIRE)--June 17, 1999--SFX Entertainment, Inc. (NYSE: SFX)
today announced that it has developed a multifaceted Internet strategy which
will encompass the launching of the first phase of its website, SFX.com,
shortly, the acquisition of a one third interest in a major developer of
private-label Internet service providers focused on any affinity group,
investment in a leading online-based sports media company, and an agreement with
Intel Corporation to deliver 20 cybercasts of live superstar performances staged
at SFX venues this summer.
In launching the first phase of its Internet strategy, SFX will consolidate the
multiple sites associated with its component subsidiaries into a single website,
SFX.com, designed to be the primary destination for all Internet users seeking
information about and access to live entertainment. SFX has been working with U.
S. Web to develop this site which will allow its visitors to not only obtain the
most current information on concert dates and performers, but also give
participating users unique access to membership in a ticket-buyers club and to
various other forms of privileged e-commerce opportunities. SFX expects to
launch the alpha site this summer, with a beta introduction shortly thereafter.
It anticipates going into full test mode at that time, with final completion in
time for its year 2000 schedule of live performances including music, theater
and family entertainment.
Alongside SFX.com, the company will also launch ticketraders.com, the first site
dedicated to the commerce of swapping and trading tickets. SFX recognizes that
there are many people, including season ticket holders to sporting events and
other ticket holders to SFX events, who may wish to trade for other tickets or
merchandise. To accommodate this underserved market, SFX will launch this new
site at about the same time as SFX.com.
Given SFX's tremendous access to entertainment and sports stars through its vast
array of production and promotional activities, SFX has also decided to
capitalize on this valuable asset by teaming up with star performers through its
acquisition of a one third interest in a major developer of private-label
Internet service providers available for any affinity group including celebrity
fan clubs, sports teams and other well-recognized names. This company not only
offers its users full access to the Internet, but most importantly delivers the
extraordinary added value of exclusive memberships to the official websites of
their favorite artists, bands and teams. It has created the first combined ISP
and online fan club, which in only seven months with virtually no advertising
attracted nearly 10,000 members. Each subscriber has full Internet access and
enjoys extensive proprietary content built around one of the world's most
recognized music stars. The site's features include the first custom designed
3-D chat environment, online collaborations with the star, song lyric contests,
and the artist's personal multi-media journals. This exciting ISP was launched
in late 1998 to rave reviews, with Ziff-Davis calling it, "the coolest ISP on
the planet." With this Internet vehicle, SFX will have even greater access to
its 37 million strong audience, a self-selected, product-hungry fan base eager
for further involvement with their
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favorite stars, teams and events. Already, fourteen additional agreements have
been made, and the company will announce launch dates for several of these ISPs
over the next few weeks.
SFX has also made an investment in a company, which produces exclusive online
sites for professional athletes and develops interactive sponsorship and
merchandising opportunities between athletes and fans worldwide. It currently
produces the exclusive official sites for over 100 prominent athletes, pursuing
merchandise and sponsorship relationships with them. Corporate sponsors such as
Coca Cola and Converse have increasingly recognized the company's popularity and
joined the online site to market their own products and web sites. Traffic in
the online site has exploded to a million visitors in the latest month and it
has established record levels of sports product sales. Given SFX's leading
position in sports marketing and talent representation across all major sports,
SFX believes there is a natural fit in making this initial investment in such a
dynamic Internet sports company.
Further establishing SFX as the world's premiere live entertainment provider,
SFX has teamed up with Intel to provide Internet users with the next best thing
to actually being at a performance which they may not be able to attend. This
partnership will use the state-of-the-art technology made possible by Intel's
Pentium III processor to apply the full power of its audio-visual technology in
bringing the excitement of 20 live SFX concerts to PCs around the world.
Customers who purchase Pentium III processor-enabled computers will be able to
experience leading edge technology, including video and realistic graphics, all
helping to duplicate as closely as possible the reality of the SFX concert-going
experience.
Robert F. X. Sillerman, Executive Chairman of SFX Entertainment, Inc.,
commented, "This is only the beginning of the implementation of our exciting
Internet strategy. While our roadmap is clear, the full potential of available
e-commerce opportunities is still ahead of us. We are mindful of the valuations
which the market has assigned to pure Internet companies, but given the
unrealized revenue potential which we foresee for SFX in this area, we have no
current intention of spinning off our Internet businesses. We have been
approached by dozens of companies offering various forms of participation in our
Internet efforts, and we continue to explore all of our options at this early
stage. We believe we have already established fundamental alliances, which,
along with our SFX.com website, will begin to take advantage of the broad and
deep relationships which we enjoy throughout the spectrum of live entertainment.
Having witnessed the popularity of our own subsidiaries' separate websites and
the powerful success of the companies in which we have invested, we see the
Internet as a great extension for ourselves. We look forward to a very
prosperous future in cyberspace and to making many additional exciting
announcements in the months ahead."
SFX Entertainment is the world's largest diversified promoter, producer and
venue operator for live entertainment events. SFX owns, partially or entirely,
and/or operates the largest network of venues in the country used principally
for music concerts and other live entertainment events. SFX has 82 venues
including 16 amphitheaters in all of the top 10 markets and owns or operates
venues in 31 of the top 50 markets overall. SFX also develops and manages
touring Broadway shows, selling subscription series in 38 markets that maintain
active touring schedules. Through
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its large number of venues, its strong market presence and the long operating
histories of the businesses it has acquired, SFX operates an integrated
franchise that promotes and produces a broad variety of live entertainment
events locally, regionally and nationally. Pro forma for all acquisitions,
during 1998, approximately 37 million people attended approximately 13,200
events promoted and/or produced by SFX, including over 6,250 music concerts,
5,800 theatrical shows, over 800 family entertainment shows and over 350
specialized motor sports shows. In addition, SFX is a leading fully-integrated
sports marketing and management company specializing in the representation of
athletes and broadcasters, integrated event management, television programming
and production and marketing consulting services in the sports, news and other
entertainment industries.
This press release includes forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933 and Section 21E of the Securities
Exchange Act of 1934. Because these statements apply to future events, they are
subject to risks and uncertainties that could cause actual results to differ
materially, including the company's absence of combined operating history and
potential inability to integrate acquired businesses, need for additional
financing, high degree of leverage, granting of rights to acquire certain
portions of the company's operations, variable economic conditions and consumer
tastes, restrictions imposed by existing debt and future payment obligations.
Important factors that could cause actual results to differ materially are
described in the company's reports on Forms 10-K and 10-Q and other filings with
the Securities and Exchange Commission.
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