SFX Entertainment moves to privatize; Robert F.X. Sillerman to acquire outstanding shares
SFX Entertainment, the juggernaut behind TomorrowWorld, Mysteryland, Awakenings, Beatport, and more has decided to go private. Robert F.X. Sillerman will acquire the remaining 62.6% of stock that he doesn’t already own for $5.25 a share. After a tumultuous trading debut in October of 2013, the company’s stock fell from $13 a share to $5 a share, which resulted in a net loss of $131 million in 2014. The deal places the value of the company at $490 million, with SFX valuing the deal at $744 million, including around $256 million in debt.
Competing bids will be heard for a maximum of 45 days, with a potential bid winner having to pay a $7.8 million termination fee. The purchase is still subject to a plethora of regulatory approvals, which may take the rest of the year to complete and approve. While the company hasn’t continued its spree of purchasing festivals over the past few months, a revamped Beatport and another summer stretch has the potential to aid SFX Entertainment’s outlook for the rest of 2015.