SFX will not sell Beatport
When electronic events promoter SFX Entertainment declared bankruptcy in February, the company needed to reassess their finances in an effort to rebuild their crumbling empire. Weeks later, it was revealed that one of their acquired companies, Beatport, had faced a major loss in revenue, which led to the announcement that the site would be placed up for auction.
The auction, which was set for May, had eventually been postponed, and in its place emerged a surprising report. The site’s editorial, music and video streaming platforms, as well as the mobile app, would cease, leaving the online marketplace as Beatport’s only feature.
Luckily for Beatport, the auction may never come now, as SFX has since decided that they will not sell Beatport. The subsidiary company will continue to operate as an online store after the site’s pivot has “dramatically improved its profitability.” SFX still intends to resolve the Chapter 11 process over the forthcoming months by pursuing “both organic and strategic growth options.”
Read the full statement below, as it appeared on Mixmag.
“Our renewed focus on the Beatport Store, following our announcement of platform changes in May, 2016, has been well-received and successful. The changes we implemented have laid a strong foundation for Beatport that have dramatically improved its profitability.
“As a result of these improving trends, SFX has determined that retaining ownership of Beatport is in the best interest of the Company and has withdrawn its motion to sell Beatport through the Chapter 11 process. We look forward to emerging from Chapter 11 in the next few months, as strong and vibrant business, positioned to pursue both organic and strategic growth options. The dedicated Beatport management team is committed to continuing to serve our core DJ customer base and enhancing the quality of our customer experience.”