News \ News \ Scene

Confirmed: SFX is selling Beatport

SFX Entertainment will auction off its retail arm in May

2016 Mar 02     
2 Bit Thugs

SFX's marketing arm Fame House is also going under the hammer - but what does this mean for the average music buyer?

In news that will come as a huge surprise to, well, nobody, US events promotion company SFX Entertainment, which owns leading download store Beatport, has announced that it is putting the Beatport site and brand up for auction.


The news follows SFX's filing for bankruptcy last month. According to the additional motion filed by SFX with the Delaware court which will allow the sale to take place, a list of 24 'interested parties' was drawn up by the company's financial advisors Moelis & Co, 18 of whom have now signed non-disclosure agreements, and those 18 parties are invited to submit written offers by 28 April.


The auction will then take place on 3-5 May, with most commentators suggesting that SFX is highly unlikely to recoup the $50m it paid for the site in 2013, given that Beatport posted an overall loss of $5.5m in 2015. SFX will also be selling off Fame House, its digital marketing agency, as part of the same process.


While this is unsettling news for record label owners, many of whom are owed royalties by Beatport, it remains to be seen what impact it will have from a consumer point of view. A new buyer may opt to keep Beatport running as it is, fold it into an existing retail service or close it down completely.


 

 

 

 

Tags: Beatport, SFX Entertainment, Fame House, auction