SFX Buys Stereosonic Festival For $75 Million
In its first acquisition since last week's $260 million IPO, EDM giant SFX has purchased Australian company Totem OneLove Group, the promoters of the massiveStereosonic festival. The purchase was promised in it's initial stock filing. SFX will own 100% of Totem, paying $60 million in cash and $15 million in common stock. A deposit of $5 million has been paid in May.
"Maintaining the strength of our festivals, events and online businesses will be challenging, and our relationship with our fans could be harmed for many reasons,” the company wrote in their prospectus, “including the quality of the experience at a particular festival, our competitors developing more popular events or attracting talent from our businesses, adverse occurrences or publicity in connection with an event and changes to public tastes that are beyond our control and difficult to anticipate.”