SFX Entertainment has only been around for around two years, but it knows what it wants and it's going after it. The company, which specializes in promoting and organizing electronic music events, announced Monday that it had purchased Made Event, a powerhouse EDM-based company in the New York City area.
Robert F.X. Sillerman, the chairman and CEO of SFX, had previously stated his aims to produce larger EDM events, which generate profit margins between 30 and 40 percent, versus small venue events that tend toward 10 to 20 percent. Aside from gaining a strong foothold in one of the country's biggest EDM hotspots, the purchase of Made also puts them in charge of Electric Zoo, the annual electronic festival held on New York City's Randall Island.
An announcement from both companies involved stated that only the ownership is changing at Made Event. Founders Mike Bindra and Laura De Palma will continue to oversee Electric Zoo.
The move helped SFX to make a splash on Wall Street, as shares in the company saw a 5.7 percent boost in trading on Monday afternoon. Major advisors have all set the stock as a "buy" with a target price in the $14 to $16 range, not bad for stockholders who saw their shares dip to below $10 a pop during the last week of October.
The company has seen mixed results since it went public less than a month ago. The initial public offering raised more than $260 million, at around $13 a share, before prices started to die down. The most recent addition to the company's portfolio suggests that initial buyers may want to hang on to SFX for a little longer.
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