SFXE CEO Withdraws Purchase Offer, Stock Drops 41% As Bankruptcy Looms
[UPDATED] EDM giant SFXE appears headed for bankruptcy after CEO and founder Robert Sillerman withdrew his offer to buy the company's outstanding stock. The news sent shares falling sharply on Thursday.
In a letter delivered to the SFXE board on Tuesday and filed with the SEC yesterday, CEO and founder Robert Sillerman withdrew his offer to buy the company's outstanding stock.
UPDATE: SFXE stock fell 41% on Thursday closing at just 24 cents per share. At one point the stick fell to 19 cents, an all time low.
In an internal memo entiteled "The Future" obtained by the Wall Street Journal, Sillerman wrote:
“At these low prices the time is not right to go forward on this path. We will instead focus all energy on righting the ship and reversing the disappointing results of this year," adding that he would "revisit things as they develop. For now we will rededicate ourselves to providing the best possible experiences for our fans.”
Several industry insiders familiar with the workings of SFX said that a bankruptcy filing was all but inevitable. The company's board had reported that they had had inquires to purchase portions of the EDM conglomerate, but now even those would likely have to happen at fire sale prices.