This website uses cookies so that we can provide you with the best user experience possible. Cookie information is stored in your browser and performs functions such as recognising you when you return to our website and helping our team to understand which sections of the website you find most interesting and useful.
Business News Industry People Live Business
SFX share price falls following heated investor call
By Andy Malt | Published on Monday 31 March 2014
SFX Entertainment’s share price dropped by 20% at one point during a conference call with investors last week, as some questioned the status of the company and its boss Robert Sillerman.
Part of the controversy arose from pictures of Sillerman raising his middle finger and grabbing his crotch as he exited a private jet in Miami, where he was attending the Winter Music Conference. This led one investor to say that an objective of the call was to make sure that Sillerman was “still sane”.
Ben Green of BD Capital then questioned the revenues of the highly acquisitive company, suggesting that it was covering up losses in its digital division, which owns companies such as Beatport and ticketing firm Paylogic.
“It looks like you guys take out some of the legacy losses of the platform company”, said Green. “What is that? Is that some of the shitty deals?”
Sillerman responded: “I am not sure that we have done any shitty deals. This is a pretty modest adjustment based on non-recurring transfers and investments in upgrades. Nothing more, no less”.
By the end of the call, some confidence had returned, with the company’s share price only 11% down, to $6.81, by the time Sillerman hung up. Though by the end of the week, when trading closed, it had fallen slightly again to $6.73.
As previously reported, Sillerman’s newish EDM-obsessed company floated on NASDAQ last October.