SFX Entertainment has seen its share price plummet over the past week.
The EDM conglomerate is now considering selling off its assets after CEO Robert Sillerman failed in his initial bid to take the company back to being privately owned.
Shares in the company fell nearly 23 per cent to $2.36 last Monday ahead of the company’s earnings release, dropping to £2.09 on Wednesday. SFX then released a statement on Friday saying it is exploring “strategic alternatives” for its future, including selling off assets.
The move follows an embarrassing incident for the company at the beginning of August when Beatport announced it would freeze royalty payments until the going private process had been completed. Sillerman quickly released a statement saying their handling of the situation was “inexcusable and should never have happened.”
SFX, which operates music portal Beatport along with Electric Zoo, Tomorrowland and Ruhr-In-Love and several other major EDM festivals, floated on the stock market in 2013 but struggled to live up to expectations after a series of big acquisitions, reporting a net loss of $131 million in 2014. [via Billboard]