UPDATE: SFXE Stock Drops Another 26% Friday AM As Sillerman, SFX Board Remain Silent
UPDATE 2: SFXE stock fell another 26% in early trading on Friday morning to an all time low of $1.38 after CEO Robert Sillerman missed a Thursday deadline to show he could complete a stock buyback. 24 hours later, the company has not issued a statement, leading to speculation of an impending asset fire sale.
The full story:
In 3 years, Robert Sillerman built SFX Entertainment into an EDM powerhouse. Since raising $260 million with an IPO, corporate missteps and poor earnings have left Wall Street nervous. Now Sillerman and SFX are standing at the edge of a crumbling cliff; and investors are heading for the door.
SFX Entertainment (NASDAQ:SFXE) had given Robert F.X. Sillerman , the company’s Chairman and CEO until 10:00 a.m. Thursday, August 13th, to prove that he could finance his promise to take the company private again.
Sillerman had promised a cash buyback of stock at $5.25 per share. The difference between that and the current share price appear to have proven too big a gap for Sillerman and his money sources to bridge.
Recently SFXE reported widening losses and admitted earlier that it had sought other offers, but only found buyers interested in specific parts of the company which include Beatport and EDM festivals Tomorrowland, TomorrowWorld and Electric Zoo.