SFX Stock Tanking Amidst Acquisition Frenzy…

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SFX Entertainment still hasn’t taken off since its IPO flopped. The company’s stock is below $10, after launching at $13. This hasn’t kept SFX from buying up companies.

Today it was announced that SFX is acquiring Fame House, Arc90, and Tunezy.

Fame House is a digital marketing company whose clients include Ultra, Eminem, and Tiesto. Tunezy is a platform that allows artists to sell unique experiences, such as Skype sessions or backstage passes. Arc90 builds digital platforms, and SFX is a former client.

This shows SFX is interested in more than just owning the faces of EDM, such as the already acquired Beatport and Tomorrowland. SFX is attempting to become a strategic dance music powerhouse by also focusing on creators in the digital sphere. SFX’s CEO Robert F.X. Sillerman released a statement full of buzzwords:

 

“These deals are consistent with our commitment to bring EMC fans around the world more of what they love, 365-days-a-year, and to be world-class in all our areas of focus”

Now let’s see if SFX can make money…

2 Responses

  1. jw

    Sounds risky to me. Marvel Comics went bankrupt doing this kind of thing during the comics boom in the early ’90s, buying up distributors, toy manufacturers, etc. The problem with electronic music is that, like comic books, popularity ebbs & flows… we’ve seen it since the inception of electronic music. It certainly isn’t going anywhere, but I wouldn’t want to be holding all of the cards when the popularity starts to wane, which it inevitably will.

    Reply

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