2015 keeps on bringing unexpected turns in the downward spiral of SFX, Robert Sillerman's EDM conglomerate that includes some of the industry's biggest promoters like Made Event and React Presents, as well as Beatport, one of the most popular streaming and download sites catering to the genre. Back in May, Thump's Michelle Lhooq argued that "dance music might not be ready for Wall Street just yet," and this turns out to have been a prescient claim as things have gone from bad to worse to abject and beyond.
In September, we reported that SFX was being sued by investors as its stock continued to plummet, which certainly didn't help Sillerman's ongoing attempts to privatize the publicly traded company. A release for the lawsuit, which was made on behalf of all shareholders who invested between February 25 and August 17, 2015, stated that Sillerman "knew or recklessly disregarded and failed to disclose that he did not have any financing in place at the time he made his proposal." This followed quick on the heels of news in August that Beatport was paying major labels but not independent ones because of complications arising from the transition from public to private.
As of this past Friday, Sillerman is offering a non-binding deal in another attempt to take SFX private, Forbes reports. The deal would entail Sillerman purchasing at $3.25/per all the shares in the company he doesn't already own, with an upfront payment of $1.75 a share, up to $50 million in pro-rata payments, and a $1 a share contingent payment right if he succeeds in selling the company within five years.
This deal comes after an earlier attempt to take SFX private at $5.25 a share fell through, with Sillerman claiming all the while that SFX will bounce back.