The once mighty SFX Entertainment is reportedly planning a fire sale of its various assets amidst a rock-bottom share price that only went lower after reports of a nightmarish scenario at one of its flagship festival TomorrowWorld over the weekend. According to first-hand accounts horrid weather left attendees stranded at the festival or in the woods on the side of the road outside without transportation back to their hotels or cars.
According to the a New York Times Business Journal report, SFX is exploring a fire sale of its numerous assets that at one time created one of the giants in electronic music. The sale could put many of its assets like Beatport, a music download and streaming website, on the market for a strong discount.
At the company's current share price of $.45, up 6.67 percent on the day (Sept. 29) the current market cap for SFXE is at a measly $47.28 million. Compared to the prices the company paid for some of its current assets -- $50 million for Beatport, $130 million for ID&T - the company has fallen a long way from its initial IPO of $13 per share and nearly $1 billion in market value.
Other companies reportedly up for sale are Totem Onelove Group, which hosts Australian festivals like Stereosonic, Chicago-based React Presents, which puts on festivals in the Chicago area like Spring Awakening and North Coast. They are also reportedly looking to sell off Flavorus, a ticket company that has become closely tied to electronic music. Monumental Productions, known for Awakenings brand is also on the block. SFX's 50 percent stake in Alda Holding, which hosts events across Holland. Last but not least, ID&T, promoter for Tomorrowland, Mysteryland, Sensation and TomorrowWorld is also on the block.
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