September 16, 2014

EDM Stockholders? SFX Aims to Raise $175 M from IPO

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SFX Entertainment, the live event production company led by executive Robert F. X. Sillerman, has filed a prospectus this week with the Securities and Exchanges Committee in an attempt to raise up to $175 million through the company’s Initial Public Offering. In the filing, SFX describes itself as the largest live event production company focused on “electronic music culture,” of which the global market is estimated to grow to $4.5 billion this year. USB Investment Bank, Barclay and Jefferies is planned to underwrite the deal.

SFX Entertainment and Sillerman have a long history in the live music business. Sillerman created a national concert network of regional rock concert promoters that he later sold to Clear Channel Communications for $4.4 billion in 2000. This business later laid the framework for the live music division of Live Nation. Sillerman has made headlines in recent years for acquiring a slew of EDM juggernauts, including Beatport, a majority stake of ID&T (The team behind Sensation and Tomorrowland), Disco Donnie Presents, and Miami concert promoter MMG. The prospectus filed also states SFX is in the process of purchasing Made Event, the company behind Electric Zoo. In 2012, Sillerman had stated he was planning to spend $1 billion to create a dance music-focused empire.

While the long-term goals of the company are not entirely clear, the prospectus states that SFX Entertainment aims to create more festivals and media content for its properties in the near future.

Source: New York Times

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