NEW YORK (CelebrityAccess) — Electronic dance and music festival promoter, SFX Entertainment Inc, is in seriously poor financial health. In October Chief Executive Robert F.X. Sillerman, the largest shareholder in the company stated he was going to take the company private and when he reneged on that in mid-November the public offering, hit a low of 28 cents a share. Read article here.
Now a month later, this has led to speculation as to whether or not Live Nation is looking at the company and its assets as a viable purchase. Live Nation, though interested in SFX’s day-long festivals and events is not in a rush because of a potential debt restructuring at SFX, people close to the matter told Reuters. Representatives for Live Nation and SFX declined to comment a of yet.
SFX reported to be almost $300 million in debt would more than likely look favorably on a Live Nation buy out depending on whic assets the company was interested in purchasing. SFX is also looking into a debt restructure with investment bank Moelis & Co.
It is unclear as of now, exactly how Live Nation is looking at the company but shareholders are hopeful. SFX began soliciting bids on October when Sillerman appeared to give the bid he later rescinded.
SFX's debt holders are also unhappy with Sillerman, according to the sources. One idea that had been floated was bringing on James Barton, the head of electronic dance music at Live Nation, and elevating him to CEO, the sources said to Reuters.
The New York Post reported earlier this month that Barton was leaving Live Nation to join SFX in a senior but undetermined position.