SFX Entertainment has endured a woeful 2015 so far, with plans for a buyout led by boss Robert Sillerman collapsing; a diving stock price; and a growing hubbub of questions about the EDM company’s financial sustainability. Today, though, SFX appears to have bought itself some time while it explores selling off parts of its business.
Billboard reported that SFX has secured $90m of new financing: $30m from an unnamed institutional investor; $30m from Sillerman’s own investment company; and $30m from a revolving credit facility with GoldenTree Asset Management. “While the company continues to explore strategic alternatives, this solidifies SFX for the short and long term, so we can focus on producing great festivals and events and operating globally recognised digital properties,” said Sillerman. While SFX’s share price rose 32% (but to just $0.62) the financing doesn’t yet answer the deeper questions around the company’s business. But at least it has more time to try to come up with some solutions.