Robert Sillerman on Beatport and the buyout — what comes next?Sillerman Beatport

Robert Sillerman on Beatport and the buyout — what comes next?

You’ve probably heard by now that Beatport was bought out by Robert Sillerman’s SFX Entertainment for a reported $50 million earlier this week. It’s a major move for a company that has acquired several key electronic music┬ápromotion and live event companies over the last couple of months. Beatport, however, is the first stake SFX has claimed in the realm of digital music sales and other media-focused ventures.

Sillerman explained that because Beatport is the source for DJs and millions of 18-34 year-old users (many of whom do not live in the US), that it provides SFX “a great starting point for really everything [they] do.” What’s even more interesting? Back in 2007, when Insight Venture Partners invested $12 million in the then burgeoning company, it was valued at $50 million dollars. No one has confirmed exact numbers, but it’s likely Sillerman just bought Beatport for the exact same price, making the deal what he called “maybe the bargain of all time.”

SFX plans to integrate Beatport into its stronghold on promotion and events “using it to help promote events, and the event audiences to help promote awareness of Beatport,” explained SFX CMO Chris Stephenson. With Beatport’s treasure trove of information on real-time demographics and buying preferences, the possibilities that come from this acquisition are endless. As Beatport CEO Matthew Adell adds, “the more data we have the more value we can create.”

And we haven’t even touched on advertising yet. Brands all want to connect with Beatport’s demographic and SFX is poised to create a very effective platform for them to do so. Forget traditional event sponsorships — let’s talk about mobile point-of-sale, ticketing, and music downloads (even further bolstered by Shazam). These two companies have a full plate. Adell hinted “we’ll have a lot of announcements” with regards to Beatport-branded mobile products, while Sillerman will first tackle pending ID&T announcements like the move into the US for the gargantuan Tomorrowland festival. What happens after that is anyone’s guess.


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