SFX Extends Bidding Period, This is Not a Good Sign

There doesn't seem to be and end to this tumultuous year for SFX Entertainment
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Harrison Williams
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There doesn't seem to be and end to this tumultuous year for SFX Entertainment
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After last week's announcement of a fire sale to sell off assets after a massive fiasco at TomorrowWorld, SFX Entertainment has now extended the bidding period.

This can't be a good sign for the company, especially after news broke out of a class-action lawsuit being issued by previous investors. SFX is currently asking investors to make offers on the company as a whole or purchase assets that are “not central to the Company’s core business.”

In May, SFX agreed to a private deal with founder and large minority shareholder Robert Sillerman at $5.25 a share. However, Sillerman had to cancel the deal due to a fact that he could not obtain financing and the lack of equity partners to engage in the offer. This has since allowed shares of SFX to drop to below $1.

SFX had this to say regarding the extended bid period:

"The committee’s decision results in a two week extension to the initial target bid date of October 2, 2015 in an attempt to give all parties sufficient time to complete their due diligence review following events occurring in September 2015, including the closing of the Company’s financing transactions on September 17, 2015 and the conclusion of the Fall festival season. The committee will finalize the bidding process as expediently as possible."

An extension to the bidding period can mean a few different things, but the reason that stands out to us is that SFX might not receiving the bids they expected. Perhaps they want more money or perhaps offers just haven't been coming in as expected. Whatever the reason, the SFX story is far from over. We'll keep you updated as more news surfaces.

The bidding deadline has now been extended to October 14th.

(Source: Forbes)