Could Beatport Save SFX? Bankrupt Co. Decides Not To Sell EDM Store Because It’s So Damn Successful
In a bid to raise much need cash, a bankrupt SFX first put EDM music service Beatport up for sale. Then they postponed the sale and gutted Beatport staff and services. Next it said the sale was on again, only to be withdraw it from the market last week. Yesterday SFX tried to explain the flip flop.
Beatport is doing so well, that SFX no longer wants to sell it, the struggling company claimed in a statement. The declaration comes after major staff cuts, a narrowing of services and weeks of on and off again sales talks and rumors.
Now SFX says Beatport has “dramatically improved its profitability." As for the overall company. SFX is now saying that it can exit Chapter 11 in the coming months months by pursuing “both organic and strategic growth options.”
Could Beatport save SFX?
Here is the full statement:
"Our renewed focus on the Beatport Store, following our announcement of platform changes in May, 2016, has been well-received and successful. The changes we implemented have laid a strong foundation for Beatport that have dramatically improved its profitability.
"As a result of these improving trends, SFX has determined that retaining ownership of Beatport is in the best interest of the Company and has withdrawn its motion to sell Beatport through the Chapter 11 process. We look forward to emerging from Chapter 11 in the next few months, as strong and vibrant business, positioned to pursue both organic and strategic growth options. The dedicated Beatport management team is committed to continuing to serve our core DJ customer base and enhancing the quality of our customer experience.”