SFX Entertainment Gets a New Name as It Exits from Bankruptcy

by San Antonio Attorney

During the past couple of years, the bankruptcy of SFX Entertainment has been one of the most talked about issue in the concert business. The company was creating a worldwide network of music festivals but crashed and went insolvent.

SFX exited bankruptcy in the first week of December, with a much lesser debt load by around $400 million, and then it announced a new company name and headship. It is now called LiveStyle, under the direction of Randy Phillips, the previous CEO AEG Live concert company, and there is going to be a goal to something similar to its first undertaking of becoming “the world’s largest electronic music event producer,” the announcement said.

According to Philips, the company is going to be based in L.A., California and continue to manage some of the former company’s flagship properties, such as the Electric Zoo and Tomorrowland festivals, in addition to the Beatport online store and Paylogic ticketing.

SFX, launched in 2012 by media businessman Robert F.X. Sillerman, had a grand plan to make the most of the rage for electronic dance music. Sillerman pledged to use $1 billion to make a his own festival empire to compete the Live Nation Entertainment and AEG Live.

Sillerman’s company went public after a year it was launched at a valuation of more than $1 billion. However, troubles quickly started to surface, with several in the industry criticizing that the company had paid too high for a portfolio of festivals that were incompatible together.

He proposed a takeover in 2015, but SFX’s stock plummeted as investors questioned his ability to do well on the deal. SFX shed off some assets, such as marketing and management firms, but it continues to own the biggest portfolio of electronic dance festivals. It filed for bankruptcy in February.

Sillerman stepped down as CEO in March, but he still the target of legal actions by previous investors over his disastrous takeover offer.

Leave a Comment

Previous post:

Next post: