Following SFX Entertainment's Chapter 11 filing earlier this year, the electronic music behemoth continues shedding assets. The latest is Fame House, the digital marketing agency it purchased in 2013 that has offered web services and social media assistance for artists such as Eminem, Tiesto, Pretty Lights and Matisyahu, among others.
Universal Music Group this week acquired the company for $1 million, and agreed to assume around $400,000 in debts and liabilities, or "cure amounts," according to dozens of pages of documents from a Delaware bankruptcy court obtained by Billboard. UMG confirmed Fame House will remain Philadelphia-based in a press release announcing the acquisition. Mike Fiebach, CEO and founder, and Eric Hahn, Chief Strategy and Marketing Officer, will continue to lead the agency. Fiebach and Hahn will report to Boyd Muir, Executive Vice President and Chief Financial Officer, and Michele Anthony, Executive Vice President of UMG.
News that SFX was looking to offload Fame House broke in March, when SFX first started exploring an auction for its online store/streaming service Beatport. At the time, Fame House was seen as ancillary to SFX's "core" business. The proposed auction of Beatport was eventually suspended last week; the digital retailer subsequently shut down its streaming service, news and events divisions in a shift in focus back to its own roots as an online store.
Fame House, founded in 2011, "provides digital marketing, social media management, merchandising and other design and development services for its clients," court documents state. As UMG's bid was the only one of two bids that was deemed qualified, Fame House's fate was not put up for auction.