Forbes: The Fall Of SFX
August 24, 2015 at 4:00 AM (PT)
It's been a bumpy ride for ROBERT F.X. SILLERMAN recently, as his EDM concert company, SFX ENTERTAINMENT, "is in shambles, the result of poor management, suspect financial planning and a certain hubris that SILLERMAN, who corporatized the live music industry in the 1990s, could do it all over again," reports FORBES.
“We don’t have enough time on this call to talk about the mistakes I made,” SILLERMAN told the magazine during a 30-minute phone conversation.
SILLERMAN took his company public in OCTOBER 2013. At the time, it traded at $13 a share and was valued at more than $1 billion. At the close of the market last week, the stock closed at 91 cents a share. SFX now has a market capitalization of $88 million.
FORBES notes SFX, "had problems from day one. Details surrounding the company’s formation remain disputed, and today SILLERMAN faces a lawsuit from acquaintances who allege that they are cofounders. That suit, led by dance promoter PAOLO MORENO, alleges that SILLERMAN, who was completely unfamiliar with dance music, took the idea to acquire and combine global EDM companies from him and his associates after they had agreed to work with the businessman and FINKEL. MORENO claims that Sillerman was mainly brought in to help organize financing for the business and that he had presented his plan to others, like billionaire RON BURKLE, before choosing SILLERMAN."
Read the full article here.