Following its bankruptcy filing earlier this month, SFX has announced plans to unload digital download giant Beatport.
SFX acquired the Denver, CO-based company in 2013 for $50 million and launched a streaming component in 2014 aimed at the electronic music fan rather than the site's traditional users, DJs. Beatport posted $5.5 million in losses in 2015. Following the February declaration of bankruptcy and the removal of CEO and founder Robert F.X. Sillerman, SFX's lawyers have filed a motion to sell off the company in federal bankruptcy court.
As Billboard reports, the court filing says: "SFX talked with 24 parties that expressed interest, with 18 signing non-disclosure agreements and performing due diligence."
Beatport provided RA with the following official statement leading up to the auction:We are both flattered and encouraged by the number of companies that have already expressed an interest in acquiring Beatport. For over twelve years, Beatport has served as the global source for electronic music worldwide. This legacy, and the complete music experience we have built around it, will continue to guide our vision. As always, our priority remains our customers and partners. We are excited for the future.
Bids for the web-based service will be taken up until April 28th. At that point the highest bid will be used as the starting point for the auction. Competing bids will need to come in increments of $250,000. The auction will occur on May 3rd, 2016, at the United States Bankruptcy Court for the District of Delaware. SFX is also looking to sell off another 2013 acquisition, Fame House, a marketing company counting Josh Wink, Pretty Lights and DJ Shadow as early clients.