Tuesday, 31 March 2015
Wall Street calls foul over Sillerman's half price SFX bid
Wall Street has "cried foul" over Robert Sillerman's plans to take his electronic dance music empire SFX Entertainmt private again - at a price one critic called “an insult to investors.” Sillerman is looking to take SFX private at $4.75 a share. While the price is a 44 percent premium over SFX’s closing price when the offer was made - it's less than half the price the company listed at - $13 per share in October 2013. Rich Tullo, an analyst with Albert Fried & Co., after calling the offer “an insult,” and encouraged SFX to hire an investment bank to solicit bids from suitors such as AEG, Live Nation and MSG. Sillerman has combined 20 global electronic dance music brands — including Awakenings, Disco Donnie Presents, Electric Zoo and Tomorrowland into a new music powerhouse - andone with an attractive audience: T-Mobile recently announced it is sponsoring an SFX Beatport music app. Tullo told the New York Post that he expected revenue to rise from $370 million this year to $400 million-plus next year. Sillerman has asked the SFX board to appoint a committee to consider his proposals.