(Hypebot) – Beatport looked like a success story creating a leading online hub for electronic dance music and culture. Now its caught in the crossfire, as parent company SFXE struggles to overcome a tanking stock price, a stock buyback deadline and at least one lawsuit.
In an email sent to music rights holders yesterday, EDM hum Beatport said that it would be unable to make payments this quarter. Beatport blamed parent company, SFX which is " currently involved in a 'going private' process that has trapped certain earned label payments."
Several artists and labels posted the email on Facebook
Since inception over 10 years ago Beatport has paid almost $200,000,000 to its label partners. Beatport's parent company, SFX, is currently involved in a 'going private' process that has trapped certain earned label payments. This process will be coming to an end in the next few weeks, at which time all payments will be able to be made.
Beatport prides itself on being the broadest and original friend of the makers of electronic music and will clear this one time obstacle very shortly. In the meantime, feel free to contact your label manager with any questions. Thank you for your patience and continued support. – The Beatport Team
Musician Morgan Geist quipped that Beatport "Couldn't seem to find the word 'Sorry' in this email."
Earlier this week a judge said that a case brought by three former SFX advisors who claim they are due more than $100 million in SFX stock could move forward.
All of this comes at a time that SFX founder Bob Sillerman has been given two weeks to complete a stock buy back program that would take the company private again. His effort is made more difficult as growing bad news drives the stock price downward.