SFX IPO: Robert Sillerman's Growing 'EMC' Empire

SFX Entertainment, the company that’s been snapping up global electronic music businesses since June of last year, filed for an IPO on Monday that revealed its executive team, potential challenges, and several of its next moves.

In addition to previously announced acquisitions ID&T, Life In Color, Disco Donnie Presents and Beatport, the IPO listed New York company Made Event, which produces the Electric Zoo festival on Randall’s Island (70% stake valued at $30 million -- an aquisition that  was rumored but not announced); Australian event promoter Totem/OneLove, which produces the Stereosonic festival ($55.3 million for a total buyout); and iMotion, a German event promoter which produces the Nature One and May Day festivals (60% valued at $12  million).

SFX Files for $175 Million IPO

As noted in the Securities Exchange Commission document, however, these acquisitions are listed as "probable" and their "consummation remains subject to closing conditions." 

Billbaord reachd out to Made Event, who declined to comment on any business transactions.

The SEC document also revealed previously unreported price tags for SFX’s first set of acquisitions. Disco Donnie Presents, the company of legendary rave promoter Donnie Estopinal, went for $9 million; dance/paint party promoters Life In Color for $12. million; and an 80% stake in Miami nightclub operators MMG for $16.9  million.

SFX IPO: Betting on EDM’s Growth Potential

The public filing was a divergent path from the one taken by CEO and Chairman Robert F.X. Sillerman with SFX’s original incarnation in the 1990s, during which the company bought up independent concert promoters, then flipped the rollup to Clear Channel for $4.4 billion in 2000. That company was spun off into Live Nation in 2005.

While SFX’s targets have been companies flourishing under the EDM boom, the term “EDM” only appears in the document in reference to SFX’s initial name for the venture, SFX EDM Holdings, now a wholly owned subsidiary of SFX.  Instead, the document champions the term “EMC,” or “electronic music culture,” used by SFX Vice Chairman Shelly Finkel on panel discussions at several EDM-focused conferences this year. “EMC” is defined as “a global generational movement driven by a rapidly developing community of avid followers among the millennial generation.”

Despite the youth of the target market, SFX’s 15 listed executives, all male, have an average age of 55, with six over 65, including Sillerman and Finkel.