Sources tell the New York Business Journal that NY-based EDM concert promoter SFX Entertainment is exploring a fire sale of its assets. This news comes on the back of SFX shares falling 7.5% on Monday and following the weekend’s TomorrowWorld Festival, where Mother Nature made things untenable and forced concert promoters to not allow any off-site concert goers to enter on the final day, much to the dismay of many ticket holders. In the wake of that chaos, SFX was left footing the bill for ticket refunds.
Top 10 Photos Highlighting The EDM TomorrowWorld Festival
CEO Robert Sillerman and SFX are said to have overpaid for a number of properties it acquired over the years, spending somewhere north of $1 billion on acquisitions, and “now the value has bottomed out,” once source noted. The Journal explains, “Between the inflated price tags of its M&A deals and a sliding stock price, the assets of SFX could be made available at a huge discount.”
Some of the notable assets that may be up for grabs include:
-Beatport, a music download website
–Totem OneLove Group Pty Ltd., a producer of Australian electronic music festivals
–ID&T, an Amsterdam-based producer of dance music festivals that put on the Sensation event at Brooklyn’s Barclays Center in 2014
-Flavorus, a ticketing company
–React Presents, a Chicago-based company
–Monumental Productions BV, known for the Awakenings brand
–Alda Holding BV, a dance music event producer
We’ll keep a close eye on this one as more developments are sure to occur in the following days and weeks.
[Story via New York Business Journal]