UPDATE: SFXE Stock Drops Another 26% Friday AM As Sillerman, SFX Board Remain Silent
UPDATE 2: SFXE stock fell another 26% in early trading on Friday morning to an all time low of $1.38 after CEO Robert Sillerman missed a Thursday deadline to show he could complete a stock buyback. 24 hours later, the company has not issued a statement, leading to speculation of an impending asset fire sale.
The full story:
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In 3 years, Robert Sillerman built SFX Entertainment into an EDM powerhouse. Since raising $260 million with an IPO, corporate missteps and poor earnings have left Wall Street nervous. Now Sillerman and SFX are standing at the edge of a crumbling cliff; and investors are heading for the door.
SFX Entertainment (NASDAQ:SFXE) had given Robert F.X. Sillerman , the company’s Chairman and CEO until 10:00 a.m. Thursday, August 13th, to prove that he could finance his promise to take the company private again.
SFXE Stock Tumbles
Sillerman had promised a cash buyback of stock at $5.25 per share. The difference between that and the current share price appear to have proven too big a gap for Sillerman and his money sources to bridge.
Recently SFXE reported widening losses and admitted earlier that it had sought other offers, but only found buyers interested in specific parts of the company which include Beatport and EDM festivals Tomorrowland, TomorrowWorld and Electric Zoo.
I’m curious….where are you getting this information that Robert Sillerman missed the 10 A.M. deadline today?? I spoke with investor relations and was told they were meeting this morning and an announcement will be made soon.
Brutal.
Look at the chart, you will find an answer. 😉 There are currently >40 hedgefonds involved… Too sad, I loved Sillerman’s strategy. Seems he raised the stakes too high…
I’m getting crushed this is bs. I thought he was standing up to the market because in an article I read he noted something like people are shorting my stock and he is not going to have hit. I was trying to stand behind him as I like the concept of the company but now he has lost me upwards of $10k. I thought he would step in and make an actual offer. Now I am unsure what to do as the stock is so low show we sell. This guy is not a great leader it appears just an a$$$hole. He should be a man and step-up to the plate. Make some sort of comment instead of being a coward. People who believed in you are getting bent over in a bad way.
good, i hope the whole thing crumbles and falls apart and this f’n pig takes a huge fall for they way he’s ruined the rock and edm scenes…
Hey Bob, I’m a journalist covering this story. Would love to speak with you. Please email me at dave@ampthemag.com
Hey dave I obviously used an anonymous name and e-mail. What questions would you like to ask me? But as of right now I am down an average of 63% on my shares of SFXE. I bought in at three different times. 1,000 shares last week because it was at 3.01 and I thought to myself it is at an all-time low it can’t go any lower.
Sillerman is another Madoff @Hole, who made-off with our money!!