The long road to getting out of bankruptcy remains a hard one for SFX Entertainment. In an announcement that has sent shock waves throughout all corners of the industry, the beleaguered event and festival company has announced plans to auction the online electronic music store Beatport, as part of a plan that involves heavy restructuring of the company and its finances.
The auction will start off at a paltry $250,000, considering that SFX pocketed Beatport for $50 million, as a part of its so-called ‘shopping spree’ between 2011-2013, during which they bought various companies connected to electronic dance music.
Robert Sillerman has received a lot of flak from various figures in the EDM scene regarding his decision-making skills. The SFX founder reportedly spent $1 billion on acquisitions back then, and the consequences came to haunt him. Beatport reported losses of $5.5 million throughout 2015, so it makes enough sense to sell it either way.
Beatport is one of the first few among a plethora of other companies to go under the hammer; another SFX company that’s on the verge of being auctioned off is Fame House, which stresses on maintaining and managing the online presence of various big artists.
The downward slump for the company was made public when TomorrowWorld 2015 was famously washed out by incessant rain and high-level mismanagement.