Monday, 4 January 2016

SFX suffers more setbacks as it defaults on Spotify deal and TMWRK team leaves

SFX , the troubled dance event company, has defaulted on its content agreement with Spotify, and will be refunding the $10 million licensing advance in installments by July 2016. Spotify can recoup its advance because the contract called for SFX boss Robert Sillerman to purchase $15 million in preferred stock by October 17th. Sillerman's failure to make this payment caused SFX to default on a $30 million credit agreement with Barclays Bank and other unnamed lenders, who could at any time declare all funds due immediately. SFX's share price was $0.193 as the year ended - it has fallen 33.4 percent since December 24th 2015 and is 96.3 percent below its 52-week high of $5.25.

SFX has also  parted ways with the company behind artist management firm TMWRK. SFX purchased TMWRK, home of Diplo and many other EDM artists, in 2014. Now TMWRK has agreed to pay $3.6 million to leave SFX, which will abandon the business and write down the value of its investment. 

More on Billboard here

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