SFX Chairman Robert Sillerman moves to buy back shares and privatize company
News surrounding SFX has been tumultuous as of late. First there was a 70% drop in share price since its IPO, then a restructuring that saw numerous layoffs, and now an offer from its chairman, Robert F.X. Sillerman, to buy back all outstanding SFXe stock. Sillerman looks to make the company private and has offered $4.75 per share to all SFXe shareholders. At the time of writing the offer is still 6.% higher than its market value, but a far cry away from the $1 billion valuation the company was given in October of 2013. SFX’s investors aren’t happy with the brash offer either, including Maglan Capital who own 1.5% of the company and told Forbes that Sillerman’s offer was “a way low-ball bid.” Experts have defined the deal as “an insult to investors” and argue that despite the stock’s momentous decline in value, the brand’s global expansion, T-Mobile and InBev partnerships, and forthcoming streaming service value the stock closer to $10 a share.