SFX to repeat history with possible sale to Live Nation
Among news of Jack Ü’s platinum record with Justin Bieber, Eric Prydz’s multiple ID releases, and Martin Garrix’s parting with Spinnin’ records, another company in particular also dominated 2015’s news headlines. Robert Sillerman and his behemoth company SFX have trudged down a downtrodden path the past year, enduring two botched plans of taking the company private and another one earlier in effort to make it public. To boot, weather-related issues at TomorrowWorld and several lawsuits against Sillerman also cast a negative light on SFX, combined with prior financial insecurities that made share prices plummet.
Considering Sillerman and his board are sitting on a $300 million debt that equates to nearly ten times the total value of SFX ($32.63 million), the company just confirmed to the press that it reached out to its bankers to find ways to restructure what it owes. So far, two options have presented themselves with the first one involving business magnate James Barton joining SFX. Formerly the owner of Cream, which he just sold to Live Nation, Barton would take over as CEO in place of Sillerman. Rumors of talks for him to join SFX arose shortly after it was confirmed the company was looking for debt relief.
The second and best option for shareholders, however, is an acquisition by Live Nation. When bids for the Sillerman’s plan to make SFX public first went out, it was rumored that Live Nation was one of the first companies to express interest in earning a stake. A buyout by the company would be the ideal turnout for SFX’s shareholders, who would potentially earn all their money back an a profit as a result. However, if only certain franchises are bought, it could also pose a loss of profit. An acquisition would also mean a repeat of history for SFX, whose original acquisition by Clear Channel in its early days led to the creation of Live Nation in the first place.