SFX CEO Sillerman Makes Offer To Take EDM Conglomerate Private
Let the bidding wars begin! The CEO of SFX has offered to take the EDM giant private. Today's move is likely to set off a bidding war that includes Live Nation and others.
Controversial SFX Entertainment CEO Robert Sillerman has made an offer to take the electronic dance music conglomerate private at a value of about $440 million. The announcement sent the stock up as much as 26%, but still below the $4.75 per share in cash offered by Sillerman.
"Those shareholders who are interested in remaining as investors in the company alongside me will have the ability to elect to keep all or part of their shares," Sillerman said in statement.
Today's offer is just the beginning.
Rich Tullo, director of research at Albert Fried & Co called today's offer a "low ball price" and "a joke".
Shareholders and Wall Street will likely demand price which could open up the bidding to all. Live Nation, AEG and an Irving Azoff led conglomerate would all seem possible buyers/
