While most of us seemingly think music festivals print money, the picture isn’t so rosy for EDM conglomerate SFX, who owns Beatport, ID&T, and more. Since going public the company’s stock has taken a nosedive and the company has gone through several corporate re-structurings. Now chairman Robert Sillerman wants to take SFX private by buying back all outstanding shares of SFX stock. This move is still upsetting some investors because his buyback offer is seen as a lowball value when compared with SFX’s valuation in 2013. Sillerman is offering $4.75 a share, while some inside the company believe that SFX partnerships with T-Mobile and Inbev and Beatport’s forthcoming streaming service should push the share price closer to $10 per share.
SFX has convened a committee of directors to consider the proposal, although the deal would still require shareholder approval. If SFX goes private and does not have to worry so much about pleasing the stock market, perhaps they will be able to put greater emphasis back on the creating unforgettable experiences for the EDM community.