Robert Sillerman’s SFX Entertainment continues to acquire some of the biggest brands in electronic music culture, finalizing its acquisition of New York-based Made Event. As the promotional company behind New York’s premier music festival, Electric Zoo, Made Event increases SFX’s circle of influence to one of the largest dance music markets in the United States. What was originally intended to be a 70% acquisition, according to IPO paperwork filed a few months back by SFX, has grown to 100% ownership of the Made Event brand — mirroring the acquisition timeline of ID&T, a company who was also recently fully acquired by Sillerman’s ever-expanding brand.
“The acquisition of Made is strategically important for SFX, as it establishes a strong foothold for us in the New York City region,” said SFX Chairman and CEO Robert F.X. Sillerman. “Co-founders Mike Bindra and Laura De Palma are the ultimate industry professionals, and our management team will benefit greatly from their years of experience. We plan to develop the Electric Zoo brand internationally and have the opportunity to build other SFX brands in the U.S. with the support of Mike, Laura and the team at Made.”
Early this morning, and just five days after announcing the acquisition of Arc90, Tunezy, and Fame House, SFX Entertainment‘s latest buyout of Totem OneLove Group has been publicized. Totem OneLove Group is the promoter and producer of Australia’s most prominent electronic music festival, Stereosonic.
Since 2007, Stereosonic established itself as Australia’s fastest-growing event, and this year, the touring festival is set to visit Sydney, Brisbane, Perth, Melbourne, and Adelaide. One notable upgrade to 2013′s Stereosonic is that the festival has been extended to two days as opposed to just one, due to popular demand. In 2012, ticket sales were 194,000 and currently, 280,000 tickets have been sold for the 2013 shows. There are still three weeks of sales remaining.
The acquisition of Totem OneLove Group is strategic in that it allows Robert Sillerman, Chairman and CEO of SFX, to transition more easily into the Southeast Asian market. The promoter is highly experienced, having spent the last 25 years producing events for audiences ranging from 500 to 70,000 in number, in addition to arranging tours for leading dance music artists. It’s no surprise that Sillerman strives to become the most powerful man in the dance music community, and with ID&T also under his wing, he is well on his way to becoming such an individual.
After recently announcing the complete acquisition at ID&T at this year’s Amsterdam Dance Event, as well as making history as the first dance music entity to go public on the NASDAQ, Robert Sillerman’s SFX Entertainment continues to expand its circle of influence. In a move to consolidate its position in content, the conglomerate has recently acquired Arc90, Tunezy and Fame House. Arc90, best known for the Readability app, is one of the premiere mobile and web app developers in the market while Fame House represents SFX’s move to become a fully comprehensive digital marketing machine. Canadian start up, Tunezy, is perhaps the most interesting of the acquisitions. The company has only just recently raised a round of funding and although it boasts 10 million users on its streaming service dedicated to independent musicians, the move may be a bit hasty — especially with Spotify and iTunes stranglehold on the streaming music market. On the other hand, it does serve a purpose critical to SFX’s core strategy – strengthening the bonds between fans and artists in a way that can be monetized.
Electronic Dance Music enters a new beginning as SFX Entertainment tests the waters of Wall Street. If you recall, SFX was founded last year by media mogul Robert Sillerman who claimed to be willing to spend 1 billion dollars to acquire dance industry assets. Priced at $13 a share, SFX’s IPO raised $260 million dollars valuing the company at $1.05 billion. SFX has sold 20 million shares, much higher than the 16.7 million it had originally planned to sell. UBS, Jeffries, and Deutsche Bank are currently managing the offering.
Funds raised from the IPO will allow SFX to grow further and complete a string of acquisitions in its pipeline. Last year, SFX recorded $239 million in revenue, with reported losses of $68 million. The next few weeks will give a strong indication if investors actually believe in the long term standing power of dance music. The two deaths at Electric Zoo give reason for concern of the future of larger scale music festivals in the US, however, TomorrowWorld’s inaugural event in Chattahoochee Hills in late September went on without any serious health related incidents.
Keep your eyes on DA as we will provide extensive coverage of any news surrounding SFX’s IPO.
Via: New York Times
It’s not exactly the type of press you enjoy seeing on the front and center of page A1 of the New York Times, but mass media has picked up on the tragic deaths surrounding Electric Zoo and what this could mean in the long run. The article begins highlighting how the $4.5 billion industry of EDM has attracted both Wall Street investors and mainstream corporate sponsors on its rise, yet recent events have put the culture in jeopardy due to overdoses from MDMA, not only for patrons but also for potential invest0rs.
Executives say that deaths like these have the potential to scare off investors and the corporate sponsors that are eager to reach the genre’s young, affluent and technologically connected fans.
The negative media couldn’t have come at a worse time as we are only weeks away from an expected initial public offering by SFX Entertainment who primarily wants to use its $300 million raised to acquire various dance music related businesses like the promoters of Electric Zoo, Made Event.
“The scrutiny that this is going to come under because of the stock market deal with SFX, it’s like a magnifying glass that’s unfair,” said Amy Thomson, the manager behind Swedish House Mafia, one of the genre’s most successful acts.
Earlier this week, SFX Entertainment announced it would be filing for an initial public offering of $175 million, but there’s a lot more behind such news than meets the eye. We’ve gotten a hold of the Securities and Exchange Commission (SEC) filing (which you can also view yourself in full here), and with a little digging have found quite a few more interesting factoids that come out of this week’s dance music industry news.
SFX Entertainment is preparing to become a public company with the announcement that they’ve filed for a $175 million initial public offering (IPO). Reuters is reporting that SFX plans to use the “proceeds of the IPO to fund acquisitions, working capital, and general corporate purposes.” Sillerman has already snatched up Beatport and ID&T but with the global dance music market valued at $4.5 billion there’s plenty more profit to be made.
Yesterday we received official confirmation that Tommrowland is expanding in the United States under the name TomorrowWorld which will take place in Atlanta, Georgia September 27-29th. Today, we hear news that SFX Entertainment has officially acquired ID&T, the producer of Tomorrowland as well as the Sensation and Mysteryland brands. The deal supersedes their original North America-only joint venture, announced last month.
SFX acquired 75% of the company, valued at approximately $136 million. ID&T is based in Amsterdam as a privately held company which has produced events in Europe and around the world for more than 20 years. Robert F.X. Sillerman, Chairman and CEO of SFX Entertainment, also the man responsible for recent Beatport acquisition, is at the forefront of the deal.
Despite multiple reports to the contrary, trusted sources have reported that mogul Robert Sillerman’s SFX Entertainment’s buying spree of top electronic dance music entities has hit a major roadblock as the largest South Beach nightlife operator, The Opium Group – which owns hotspots Mansion, SET, Mokai and Cameo – has walked away from a recent deal.
This comes to light on the same week that The Opium Group has announced a grand-reopening of South Beach staple, SET, which has undergone a complete renovation and will feature shows by Arty, Bob Sinclar and Sasha during Miami Music Week.
You’ve probably heard by now that Beatport was bought out by Robert Sillerman’s SFX Entertainment for a reported $50 million earlier this week. It’s a major move for a company that has acquired several key electronic music promotion and live event companies over the last couple of months. Beatport, however, is the first stake SFX has claimed in the realm of digital music sales and other media-focused ventures.