UPDATE: 11/19/2015 - Rober F.X. Sillerman has withdrawn his offer to purchase SFX Entertainment. The Wall Street Journal has acquired an internal memo that has Sillerman saying:
"At these low prices the time is not right to go forward on this path. We will instead focus all energy on righting the ship and reversing the disappointing results of this year," he wrote. "[We will] revisit things as they develop. For now we will rededicate ourselves to providing the best possible experiences for our fans."
SFX Entertainment, the production company lead by Robert F.X. Sillerman, is on the verge of bankruptcy after a tumultuous quarter. In the past three months the companies stock has plummeted 61.65% and in the last week alone it's dropped 45.64%. With the promise of a sale on the horizon, this does not bode well for the company.
SFX is currently in the midst of a couple lawsuits as well. Back in September, a group of investors filed a lawsuit citing that Sillerman gave them false and misleading information regarding the acquisition of the company with finances that Sillerman never had. SFX is also currently batting federal charges for possible violations of federal securities laws due to Sillerman attempting to privatize the company.
This past summer wasn't a bright spot for the company either with the unorganized fiasco at TomorrowWorld along with labels not receiving royalties from Beatport, the future is not looking bright. SFX Entertainment is the production company behind such festivals as Tomorrowland and Electric Zoo. Some may have thought the company was too big to fail, but that's not looking to be the case at the moment. We'll keep you updated as soon as we know more.
[via American Trade Journal]