The complexities of public companies and the stock market are a large hurdle for any adolescent, or adult, to overcome in order to begin investing. Generally however, an individual’s first investment will be in a company they care for or identify with. Mine, for example, when I was twelve, was Nintendo. This generation’s might be SFX Entertainment – but that might not be an option anymore if CEO Robert Sillerman has anything to say about it.
When SFX went public in mid-2013, investors were reticent to climb aboard the EDM train as share price saw a “near 70% share price tumble since an Oct. 2013 initial public offering.” However, Sillerman was still able to use the company’s initial valuation to buy up large stakes in the EDM market, including ID&T, i-Motion GmbH Events, Totem Onelove Group, Made Event and EZ Festivals.
Now, Sillerman wants to buy it all back. In an effort to go private, Sillerman “unveiled a deal to buy SFX Entertainment” last Wednesday. This would negatively affect shareholders and investors who paid more than $5 a share.
“Maglan Capital, an owner of roughly 1.5% of SFX Entertainment’s outstanding stock, called Sillerman’s $4.75 a share go private offer “a way low-ball bid” and told Forbes by telephone it believes the company is worth over $10 a share, given the global expansion of SFX’s EDM festivals, the strength of its partnerships with marketers such as T-Mobile and Anheuser Busch Inbev, and the prospects of its burgeoning streaming platform.”
To read the whole story, visit Forbes.
Photo by Rutger Geerling