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Fonder Buys $774 Million SFX Stock, Takes EDM Giant Private

image from s3.amazonaws.comAnyone old enough to remember the early days of Live Nation (then known as SFX), know that founder Bob Sillerman has more financial tricks up his sleeve than a day trader on crack. Today, Sillerman, played his latest hand, taking EDM giant SFX private again.

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SFX Entertainment (SFXE) has signed an agreement that will take the publicly traded EDM music and tech company private again.

sillerman sfxIn a deal announced this morning, Robert F.X. Sillerman, the Company’s Chairman and Chief Executive Officer, of SFX Entertainment, will acquire all the outstanding common stock of SFX that he does not already own. He currently controls about 37.4 percent of the outstanding stock of SFX.

Under the terms of the agreement, SFX stockholders will receive $5.25 in cash for each share of SFX common stock, in a transaction valued at approximately $774 million.

Stockholders will also be able to elect to retain stock in the Company in lieu of cash. The price represents a premium of 42% over SFX’s closing share price of $3.70 on February 24, 2015, the last trading day before announcement of the going-private transaction, and a premium of approximately 49% over the volume weighted average closing share price during the previous 30 trading days ending February 24, 2015.

What Is SFX ?

image from s3.amazonaws.comSFX Entertainment  (NASDAQ: SFXE) is the largest global producer of live events and digital entertainment content focused exclusively on electronic music culture (EMC).

SFX owned festivals incuse Tomorrowland, TomorrowWorld, Mysteryland, Sensation, Stereosonic, Electric Zoo, Disco Donnie Presents, Life in Color, Rock in Rio, Nature One, Mayday, Decibel, Q-Dance, Awakenings, and React Presents, as well as the innovative ticketing services Flavorus and Paylogic.

SFX also owns and operates Beatport.

 

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