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SFX Entertainment Acquires React Presents After Testing New Stock Lows [SFXE]

React-logoYesterday SFX Entertainment [SFXE] announced an agreement to purchase React Presents, a major Midwest event and festival producer. The deal includes Chicago's Spring Awakening Music Festival and Northern Wisconsin-based Summer Set Music & Camping Festival. As SFXE continues its clearly defined path the public stock continues to test new lows though it's back up today.

Recent Acquisitions

In December SFXE announced the acquisition of 75% of Paylogic, a European-based ticketing company that provides ticketing to both major EDM events as well as a general range of entertainment and sports events. The deal was valued at "approximately $22 million."

Earlier this month SFXE completed its previously announced acquisition of Rock in Rio, a major purchase at "approximately US$ 62.3 million, as of the closing date."

Yesterday an agreement to purchase React Presents was announced:

"Founded in 2008 by Lucas King and Jeff Callahan, React Presents is a full-service concert and festival promotion company based in Chicago, known for its two major festivals – Spring Awakening Music Festival in Chicago and Summer Set Music & Camping Festival, held in Northern Wisconsin."

"Overall in 2013, the company promoted nearly 200 events in Illinois, Wisconsin and Michigan which were attended by more than 375,000 fans."

Valuation details were not released.

SFXE Tests New Lows

Though there's been some negative press of late for SFX Entertainment nothing seems to be getting major attention. I haven't dug any deeper but I'm not sure why SFXE has been hitting new lows at 7.52 on February 19 and 7.53 the following day.

Typically the acquirer takes a stock hit when an acquisition is announced so having a long-term strategy based on near-term acquisitions is going to have an effect. SFXE really seems to be a long-term play so its stock may be troubled for quite a while.

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Hypebot Senior Contributor Clyde Smith (Twitter/Facebook) is currently relaunching All World Dance. To suggest topics about music tech, DIY music biz or music marketing for Hypebot, contact: clyde(at)fluxresearch(dot)com.

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