Multiple sources have confirmed that Beatport has laid off its entire engineering team based in the company’s San Francisco office. In addition to shuttering the SF office, twenty employees were also let go at Beatport Headquarters in Denver. Both these moves come after the company posted a $1 million dollar operating loss during Q3 2013. SFX, which acquired Beatport earlier this year, is currently in the process of streamlining by cutting teams that are not profitable. In lieu of the news, SFX has released the statement below:
“With the additional resources provided by SFX, we are making significant new investments in Beatport and focusing on providing the best possible experience for our users – the DJ, the producer, the labels and the entire Electronic Music Culture community. To allow us to adapt and improve our service, it was necessary to make some organizational changes. We have closed our San Francisco office, reorganized our engineering team, and cut some positions in Denver. Beatport has always been about innovation and connection and these moves allow us to focus on that. With the recently announced acquisitions of PayLogic and Arc90, this refocus on maximizing Beatport as the definitive site for everything related to Electronic Music is indicative of our commitment to igniting the simmering Revolution of this astounding movement, Electronic Music Culture. We look forward to unveiling a number of exciting new technology initiatives in 2014.”
Beatport currently has a shell of its former team left to maintain non-store departments and the remaining members are currently being managed by Arc90 app development team, another recent acquire by SFX Entertainment.
The EDMpire that took Wall Street has been amassing growing companies of the Sillerman-coined “electronic music community” consistently over the past year, with intentions now far beyond the festival market after going public in October. SFX has recently increased ownership in ID&T to 100%, finalized a notorious planned acquisition of Made Event, and extended internationally with the collection of Germany’s i-Motion and Brazil’s Rock in Rio. Those gains, however, are only one facet of the all-encompassing EMC titan that SFX is en route to becoming. Already equipped with Beatport, Sillerman has recently strengthened digital content with Arc90, Tunezy, and Fame House.
Now SFX Entertainment is picking up another piece of the puzzle. A vital piece. Live event ticketing. Acquiring 75% of Paylogic, Sillerman’s grip now consists of one of Europe’s fastest growing ticketing companies, one that the CEO states “has consistently proven its ability to handle unprecedented ticket requests” after providing services for the inaugural TomorrowWorld in September. Valued at $22 million, Paylogic has sold over 20 million tickets to fans across the world, operating out of European offices and already handling ID&T events such as Mysteryland and Sensation, domestically.
Paylogic CCO, Jan Willem van der Meer, notes the opportunity to “further advance and develop the most optimal ticketing and data solutions for this market and beyond: web, mobile, and social.” He also says that SFX has a “strong vision” and the “partners, brands and strategy that can really make a difference.”
Due to become an integral piece of the unprecedented connective design that SFX aspires to frame with the electronic generation, the ticketing department is expected to be of the new generation model being set in place. On Paylogic’s role in SFX’s big picture, Robert Sillerman says it will be “invaluable to us as we connect the millions and millions of EMC fans to the content and events they love, and to each other through integrated social media.”
A week after announcing its purchase of German promoter i-Motion for $21 million, SFX expanded its empire with a 50% purchase of Roberto Medina’s Rock In Rio. The festival is best known for rock music in Rio de Janiero bringing in talent such as Beyonce, Justin Timberlake, Bruce Springsteen, and David Guetta. Although, no official dollar amount has been disclosed, SFX Entertainment has entered into an option agreement in a newly formed company that will own all assets and operations of Rock In Rio. This partnership will allow Rock In Rio to take place in the United States in 2015. In a recent interview with Billboard, when Robert Sillerman was asked if SFX was back in full acquisition mode he answered with “save space because we’re just getting started.”
Robert Sillerman’s SFX Entertainment has just acquired German dance event promoter i-Motion. The acquisition was in the works this summer (pre-IPO), but has just recently been finalized. The company operates eight festivals spanning across Germany, Poland, and Belarus, most notably the famous Nature One festival, which boasts a crowd of approximately 65,000 attendees and has been produced since 1995. i-Motion also lists 20 media partners and 23 brand sponsors including MTV, Radio1LIVE, Coca-Cola, and Phillip Morris. Following the 100% acquisition of ID&T just last month and the addition of i-Motion to its ever-expanding list of properties, SFX has established a firm stranglehold on the European festival market.
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.”
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.
On Thursday, the 2013 Amsterdam Dance Event held a highly anticipated Q&A session with SFX head of acquisitions Shelly Finkel and ID&T CEO/Founder Duncan Stutterheim where they announced SFX’s 100-percent ownership of the Dutch event production company. On SFX’s first SEC filing, it was revealed that a majority stake (75-percent) was owned by the American corporation.
“We finalized the deal an hour ago, instead of the previous 75-percent, ID&T is now going to be 100-percent owned by SFX. Now it’s very clear, I work for SFX. I will be working at head office in Europe, and we’re going to still create the same shows. But from this point, ID&T and SFX will be together.” – Duncan Stutterheim
Last year, Duncan reported that he turned down a 100 million dollar offer from an American investor, however, was convinced that SFX was the right home for ID&T to expand into the global market. Finkel also hinted at the potential acquisition of a ticketing platform as well as a new digital strategy that will expand Beatport’s digital content platform.
It’s the day EDM finally hit Wall Street. Robert Sillerman’s dance music empire known as SFX Entertainment offered an IPO this morning after acquiring many of the industry’s leaders over the course of its first two years in existence. Being traded on the Nasdaq stock market as SFXE, Sillerman’s juggernaut sold 20 million shares at $13, reaching the higher of the previously approximated $11-$13 range. Over the course of the day it saw a low of $10.64 and a high of $13.39, ultimately settling at $11.89 for a decline of 8.54% by Nasdaq’s 4pm closing bell — which was rung by CEO Robert Sillerman, SFX executives, and, surprisingly, Afrojack.
Stay tuned as Dancing Astronaut will be bringing you the latest in dance music’s Wall Street occupancy as the newly public SFX continues to make NASDAQ home.
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
After filing for an estimated IPO of up to $175 million dollars back in June, SFX has estimated an initial offering of 16.7 million shares as the company raises money for corporate expenses and upcoming acquisitions. The shares are expected to price between $11 and $13 according to a recent filing by the SEC. The proceeds of SFX’s IPO will go directly to funding the cash portion of several planned, but uncompleted acquisitions of a handful of dance music’s biggest brand names. Brands that are currently under the SFX umbrella include: ID&T the owner of Tomorrowland and Sensation; Made Event, the creator of Electric Zoo; i-Motion, owner of Germany’s Nature One event; and Totem One Love Group, owner of Stereosonic. SFX has reported a combined $242 million revenue last year with an estimated net loss of $47.9 million in prospectus.
The company will list on NASDAQ under the symbol SFXE.
Via: WSJ, Forbes