The EDM giant may be forced to sell off Beatport and other assets to stay afloat.
SFX Entertainment is considering a “fire sale” of its assets after bad weather at the TomorrowWorld festival caused the company’s share price to drop by a further 7.5%, the New York Business Journal reports.
The EDM giant has been left with a refund bill to pay after it was forced to close the festival to day attendees when weather conditions made it inaccessible. According to Billboard, many festival-goers were forced to sleep on the side of the road in wet conditions, while Your EDM described the conditions as “deplorable”.
According to sources, SFX is reportedly looking to sell some of its assets to cover the cost and claw back some of its share price, which has been falling since owner Robert Sillerman failed in his bid to buy the company back from public ownership in August.
Assets being considered for include online music store Beatport, ticketing company Flavorus and a number of international festival producers, which sources say were overpaid for, and that the value of which “has bottomed out”.