Throughout dance company SFX Entertainment’s recent financial troubles, the prospect of it selling Beatport has been raised.
Now it is actually happening: a motion filed in the US Bankruptcy Court for the District of Delaware outlines the likely process for the sale of all or substantially all of the assets of 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 Asset,” explained the filing.
SFX had interest from 24 potential buyers, with 18 of them executing nondisclosure agreements to perform due diligence, and three submitting preliminary indications of interest. The final auction process is due to take place on 3 May, with a sale hearing in the court due for 5 May.
Beatport’s revenues fell from $46.5m in 2014 to $39.1m in 2015, sliding from a $7.1m profit to a $5.5m loss in that time, according to SFX’s most recent financial filings.
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