SFX Bows Out Of Two EDM Deals
December 31, 2015 at 1:18 PM (PT)
ROBERT SILLERMAN's beleaguered SFX has bowed out of a pair of recent deals, according to the website YOUR EDM.
The partnership between SFX's BEATPORT and SPOTIFY, first announced in JULY, has been formally terminated as of DECEMBER 17th, with SFX forced to repay a $10 million recoupable advance to the streaming service as outlined in the settlement agreement. SFX has paid $2.5 million of the total, but the remainder is due no later than JULY 1st, 2016. However, that deadline will not hold in the event of a BEATPORT sale or payment default.
Earlier this year, SILLERMAN made a $774 million deal to take SFX private (NET NEWS 5/26)
In addition, TMWRK, the mangement company behind EDM stars DILLON FRANCIS, JACK Ü, A-TRAK and DIPLO, acquired by SFX in APRIL, 2014, is also bailing by paying a $3.6 million settlement, with those funds likely earmarked towards remunerating SPOTIFY for the failed BEATPORT deal.