Robert Sillerman unable to re-privatize SFX and now looks to sell the company
In late May, Robert Sillerman made the surprising decision to re-privatize SFX Entertainment, his company that plays host behind massive electronic events like TomorrowWorld and Mysteryland as well as the platform Beatport. Originally, his plan was to reclaim the 62.6% of stock not owned by himself first at $4.75 a share, then raised to $5.25, a noticeably lower price than what the company original sold shares for at $13 in its IPO.
Sillerman began this process in February and faced an August 13th 10 AM EDT deadline to submit financial details to take the company private again. As many speculated earlier this week, the stock share plummeted to well below his offered $5.25 per share to $1.65 per share, causing Sillerman to miss his deadline to re-privatize.
Reportedly, the company is now looking to consider “strategic alternatives,” which includes the possibility of a sale of the entire company either in whole, or in pieces.
Many blame these results on the internal management of the company, rather than the ‘unprofitability’ of the live concert business. “We continue to like the industry,” Richard Tullo, an analyst at Albert Fried & Company told the New York Times. “But these guys aren’t doing anything right. They’re not managing the business correctly.”
This news comes after a landslide of inauspicious news, including the announcement of a $100 million lawsuit against SFX from Sillerman’s ex-business partner, Paolo Moreno and controversy from Beatport about withholding royalty payouts to artists.