SFX Entertainment files for bankruptcy, after a long struggle from CEO Robert Sillerman to halt the plummeting stock price (SFXE currently at USD 0,069 on NASDAQ!).

It sounded like a success story back in 2012 when Robert Sillerman formed the second iteration of SFX and started the buy everything remotely linked to the EDM culture.

But after going public in 2013, the stock price started to decline rapidly and Sillermans very public attempts to make SFX private again failed, pushing the stock price further down into deep lows.

Yesterday then, SFX entertainment filed for bankruptcy in order to erase 300 million in debt and raise around 115 million in debt-for-equity trade, which basically means restructuring the company financially in order to be able to restart.

The portfolio of EDM related properties SFX acquired is quite impressive. A quick overview of the ones that probably will ring more than one bell (source: wikipedia):

ID&T (75% stake)

  • Energy
  • Mysteryland
  • Sensation
  • Q-dance
  • Tomorrowland

Rock in Rio (50% stake)

  • Rock in Rio
  • Rock in Rio Lisboa
  • Rock in Rio Madrid
  • Rock in Rio USA

Digital

  • Arc90
  • Beatport
  • Fame House
  • Paylogic (75%)
  • Tunezy
  • Flavorus

So what does this means, for let’s say, Tomorrowland, or Beatport? Will these companies be affected by the bankruptcy? It would be naive to say there will be no impact at all. A new CEO will be appointed for SFX, and Robert Sillerman will continue to be involved as Chairman. A new CEO probably a means a new strategy for the company, and that could very well be slimming down the huge portfolio of properties.

For now, you will still be able to go to your favourite festival, and download your DJ tunes from Beatport. But things will change for sure. Stay tuned.

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