SFX Entertainment continues to shed its various assets following its Chapter 11 bankruptcy filing in February, with the latest coming this week. The company announced in court documents signed yesterday (June 6) that after an auction conducted late last week, it had identified a $4 million bid from Vivendi Ticketing U.S. LLC as the "highest or otherwise best" offer to purchase its ticketing wing Flavorus Assets. A judge is expected to review the final bid June 8.
Flavorus was purchased by SFX in April 2014 for $17 million in an effort to build out its ticketing efforts; the company services tickets for events such as Electric Zoo, Mysteryland USA, North Coast Music Festival and several pride festivals, among others. Vivendi U.S. processes 60 million tickets per year, court documents show, and is the second-largest ticketer in the U.K. and France behind Ticketmaster. The company is expected to use Flavorus to flesh out its U.S. operations and bolster its European ones.
The sale comes less than two weeks after SFX offloaded digital marketing company Fame House to Universal Music Group in a deal worth $1 million in cash and $400,000 in other assets. Both Vivendi U.S. and UMG are owned by French media conglomerate Vivendi S.A. As with the Fame House auction, SFX deemed Flavorus as superfluous to its core operations.
SFX had originally planned to auction off its digital store/streaming service/live events company Beatport earlier this year; that auction was delayed and ultimately suspended indefinitely last month, with Beatport instead shutting down its streaming service, events business and news sections to re-focus on its online store.