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SFX proposes returning to private ownership, Wall Street not impressed

By | Published on Friday 27 February 2015


It’s no secret that while maverick entrepreneurs like Wall Street’s money, they are often less keen on the scrutiny and politics that goes with running a publicly listed company. And that’s even more true once you throw entertainment into the mix.

So perhaps it’s no surprise that entertainment industry veteran Robert FX Sillerman has revealed plans to take his latest venture SFX – the EDM-focused company with a core business in dance music festivals – back into private ownership, having only floated the firm in 2013.

Sillerman has asked the SFX board to appoint a committee to consider his proposals, which would see the firm attempt to buy back as much of the company as possible at $4.75 a share, while offering those keen to retain equity in the business the option to do so as shareholders in a privately held concern.

But the proposals haven’t gone down especially well with some key Wall Street players, not least some of the firm’s existing investors. One told Forbes that Sillerman’s offer was “a way low-ball bid”, suggesting that it would expect an offer more than double the one currently on the table. Meanwhile an analyst called the proposal “an insult to investors”

So that’s all fun, isn’t it? Perhaps Sillerman’s EDM buddies could pop those investment types some chill pills.