With SFX Entertainment currently restructuring after filing for chapter 11 bankruptcy, the company has concluded that it needs to unload the online music retailer Beatport from it's assets.
Court documents reveal that it is not financially practical for SFX to continue to invest in Beatport, as stated by IQ Mag.
According to the court paper obtained by IQ from Kurtzman Carson Consultants, reads: "After the acquisition, SFX made significant financial investments in Beatport.
"While the Beatport Assets are valuable to the SFX enterprise, given SFX’s current financial condition, SFX cannot afford to make additional investments in Beatport as may be needed in the future, and therefore, has decided to sell the Beatport Assets."
In response, the statement from Beatport reads: "We are both flattered and encouraged by the number of companies that have already expressed an interest in acquiring Beatport.
"For over 12 years, Beatport has served as the global source for electronic music worldwide. This legacy, and the complete music experience we have built around it, will continue to guide our vision. As always, our priority remains our customers and partners. We are excited for the future."
Along with SFX's financial troubles, Beatport has gone through similar complications in the past, including an incident where the company had to withhold royalties from artists and labels. We'll be watching this story closely in the coming months and will have more information as it arises.