SFX Entertainment has had a tough couple of weeks as a public company, with the price of shares starting off a $13 and since plummeting to $9.50 at the close of Thursday. Following a successful IPO, SFX were able to sell 20 million shares at $13 for a gross of $260 million. Nevertheless, these new psychological barriers will be pressing on the nerves of investors.
Has the tough times halted the spending? Of course not! At this year’s Amsterdam Dance Event (ADE) the head of acquisitions at SFX (Shelly Finkel) and ID&T founder Duncan Stutterheim revealed that ID&T is now fully owned by SFX Entertainment, who previously held a 75% stake in the Dutch company. This adds to their bustling portfolio that now boasts Beatport, Tomorrowland and TomorrowWorld as well as Australian national festival Stereosonic.
Stutterheim is quoted:
“Now it’s very clear, I work for SFX. I will be working at head office in Europe, and we’re going to create still the same shows. But from this point, ID&T and SFX will be together.”
In speaking about why they joined SFX completely, Stutterheim explained:
“We had worked together in the U.S., but at that point we really believed that we wanted to be a Dutch company creating shows, and we believed we had a strong market across a number of countries…but sometimes the idea needs to incubate.”
“As we continued to work together, at some point a list came up of the possibilities of what could be done if we sold the company. TomorrowWorld was an example of that; the festival cost 16 million dollars to put up. Those are amounts of money that we just don’t have. We are a big company, but we can’t invest that kind of money. So it was an opportunity for the company to grow.”
The next few months will be a test of ‘EDM’ and it’s popularity among commercial masses.
source: Do Androids Dance