SFX Entertainment filed for bankruptcy on Feb. 1 and now we are starting to see how the courts look to restructure the company and its mounting debts. According to new filings in Delaware bankruptcy courts, SFX is looking to auction off one of its most prized assets, digital marketplace and streaming service Beatport. It is also looking to sell off marketing company Fame House.
SFX bought Beatport for $50 million back in 2013 and its ride into the bankruptcy has been bumpy. There were massive overhauls of staff and changes to the look and feel of the service as it expanded into video, streaming and editorial.
Beatport posted a $5.5 million loss in 2015, which surely didn't help SFX's financial stability.
Bids for Beatport are due by April 28 ahead of an auction that will begin with the highest bid received by the same day in increments of no less than $250,000 on May 3. The court will approve the sale on May 5. So far 24 parties have expressed interest in Beatport with 18 signing non-disclosure agreements so far.
In a statement to Resident Advisor, Beatport said about the interest in the auction. "We are both flattered and encouraged by the number of companies that have already expressed an interest in acquiring Beatport. For over twelve years, Beatport has served as the global source for electronic music worldwide. This legacy, and the complete music experience we have built around it, will continue to guide our vision. As always, our priority remains our customers and partners. We are excited for the future."
SFX is also looking to sell marketing firm Fame House, which it acquired in 2013 for an undisclosed sum. The company had DJ Shadow, Pretty Lights and Josh Wink among its early clients. The company has now become an internal digital agency for many of the SFX properties.
