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SFX reportedly considering fire sale

By | Published on Thursday 1 October 2015

SFX

SFX Entertainment is now considering a fire sale of some of its assets, according to the New York Business Journal. This follows that further share price wobble caused by a damp and problematic edition of its TomorrowWorld festival at the weekend.

As previously reported, bad weather hit the festival site in Georgia, which led to major transport issues on Saturday night, with some festival-goers claiming problems were exacerbated by the organisers’ response to the conditions. Unable to get home, some day ticket holders apparently opted to sleep by the side of the road. Sunday’s proceedings were then closed to those not already on site.

This is the latest hit the SFX share price has taken recently, the firm’s stock tanking during and after founder Robert FX Sillerman’s aborted attempt to take the company back into private ownership. We already knew that the company was considering offers to buy some of its assets, though the NYBJ now reckons it’s looking to get rid of them pretty sharpish in order to keep afloat, despite that recent $90 million cash injection.

The EDM company’s rapid expansion since launch has seen it spend over $1 billion on the acquisition of various festivals, ticketing firms, marketing outfits and the Beatport download store. A fire sale would likely see it only make a fraction of that money back. It’s worth noting that the SFX share price has recovered since its post-TomorrowWorld dip, though it’s still at 46 cents compared to $3.70 at the start of the year and £11.90 when it first floated in 2013.



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