The World's Biggest EDM Entertainment Company Reclaims TomorrowWorld
Event company SFX Entertainment pops up in the headlines frequently, mainly due to the company's purchase of dance music events such as Electric Zoo and TomorrowWorld. The company grew in size over the past year, but overall lost $131 million last year. A few months after the reported loss, news surfaced that SFX founder Robert F.X. Sillerman will take SFX private in the next month.
Sillerman plans to purchase the remaining shares of the company at $5.25 a share, down considerably from the $13 a share value the company held when it went public in October 2013. SFX's board members unanimously approved the decision for the company to go private.
Despite SFX's upcoming events, the company lowered its projected earnings forecast due to the poor ticket sales of the inaugural Rock In Rio USA music festival in Las Vegas, a spin-off of the Rock In Rio music festival in Brazil. Additionally, SFX reported that they made $52 million in revenue and lost a net total of $42 million during the first quarter of 2015.
The deal to go private will cost $774 million in total.
Reacquaint yourself with one of SFX's flagship events by watching the TomorrowWorld aftermovie below...