Tomorrowland Owner Seeks Takeover As Stock Prices Hit Historic Low
Amidst news that SFX Entertainment's stock prices have plummeted, founder Robert Sillerman made an offer to take the company private again to no avail. With major stakes in EDM with festivals such as Tomorrowland and Electric Zoo, Sillerman offered to pay $5.25 per share and was still turned down. The shares have fallen to a current value of $1.55.
According to Billboard, Sillerman made an official statement during which he "reaffirmed his intention" to bid for shares at a lower cost in order to take SFX private.
Sillerman had made his initial offer to buyout the company at $4.75 per share at the beginning of the year, but increased his offer to $5.25 after stakeholders in the company stated that the company was worth more.
This price was accepted by a special committee on behalf of the company in May, but with the stock value of SFX tanking, this bid no longer appears to be attainable.
Ben Mogul, an analyst for Stifel stated:
"Given the material discount to the bid, there is clearly an ability for Mr. Sillerman to rationally argue for a lower bid to be accepted."
SFX has stated they are seeking "strategic alternatives" for the future of the company and all no-shop restrictions have been lifted with the hopes of finding a buyer "in light of the recent substantial decline in its share price."