‘I am prepared to move expeditiously,’ Sillerman says in new offer to buy SFX
Among the electronic music industry’s largest businesses, SFX Entertainment by far had the most tumultuous summer of anyone. A fourth quarter loss of $131 million, an impending class action lawsuit, and the debacle at TomorrowWorld represented only a few of the low-lights for the dance music conglomerate. Now, news has surfaced that its founder, Robert F.X SIllerman, has offered to buy the company’s remaining shares.
On October 14th, a proposal was brought to the company’s board of directors for Sillerman to acquire all outstanding shares of Common Stock not already beneficially owned by him for up to $3.25/share. If the proposal is approved, the remaining shareholders who wish to retain their equity could, and would receive an amount in cash equal to the sum of $1.75 plus 100% of the amount Mr. Sillerman receives.
He writes in a letter to the SEC, “I am prepared to move expeditiously towards the negotiation and execution of definitive agreements for my proposed acquisition transaction. No further diligence review or analysis is required.”
While it’s uncertain what this means for the parent company of Beatport, Tomorrowland, Mysteryland, and Sensation among a plethora of other industry titans, the news may portend a more focused future. With pressure from Insomniac Events founder and CEO Pasquale Rotella for consumer’s dollars, the battle between festival dominance over the next few years will certainly not stop. Consumers and industry leaders alike are watching SFX like hawks as the Special Committee of the Board and other imperative shareholders evaluate the proposal.