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