Bloomberg Anywhere Remote Login Bloomberg Terminal Demo Request


Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.


Financial Products

Enterprise Products


Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000


Industry Products

Media Services

Follow Us

SFX Falls as TomorrowWorld Producer Raises $260 Million

SFX Entertainment Inc., the producer of electronic-music festivals including TomorrowWorld, declined almost 9 percent in its debut after raising $260 million in its U.S. initial public offering.

SFX sold 20 million shares for $13 each, according to a statement yesterday, after offering 16.7 million shares for $11 to $13. They fell $1.11 to $11.89 at the close in New York. The stock is listed on the Nasdaq Stock Market under the symbol SFXE.

“The decline in the stock price is surprising given that the underwriters and company priced at the high end of the range,” Paul Sweeney, an analyst at Bloomberg Industries, said by e-mail.

The IPO will help New York-based SFX compete with Live Nation Entertainment Inc., the world’s biggest concert promoter, as SFX uses the proceeds to complete four acquisitions. Shares of Live Nation, which itself has purchased several electronic-music festival organizers over the past 12 months, doubled this year as summer concerts boosted sales.

SFX Chief Executive Officer Robert Sillerman is no stranger to the concert industry. During the 1990s, he spent $1.2 billion to make SFX Entertainment the largest U.S. concert promoter, eventually selling the business to Clear Channel Entertainment in 2000 for $4.4 billion. Clear Channel split off its concert business in 2005 as Live Nation.

That past success won’t make investors cut the company any slack when it comes to executing on its plans, Sillerman said in an interview on Bloomberg TV.

“Investors are much less interested in what you used to do than what you are going to do,” said Sillerman, who is recovering from throat surgery and spoke with a raspy voice.

ID&T, Totem

At CKX Inc., Sillerman acquired Simon Fuller’s 19 Entertainment to gain access to the TV producer’s rights to “American Idol.” He also acquired rights to Elvis Presley’s estate and the Graceland mansion in Memphis, Tennessee. Apollo Global Management LLC acquired CKX in 2011 for $500.6 million, renaming it CORE Media Group Inc.

Sillerman will hold about a 47 percent stake in SFX after the offering excluding an overallotment, according to the original terms of the prospectus.

SFX will use proceeds from the IPO to complete its purchases of ID&T Business; I-Motion GmbH Events & Communication, a German electronic-music event producer; Totem Onelove Group, an Australian festival producer; and a 70 percent stake in Made Event LLC, which produces Electronic Zoo in New York.

Dance Music

Sales at SFX jumped to $37.6 million in six months through June from $378,000 in the year-earlier period, mostly from events that SFX produced, promoted or managed, according to the filing. At the $13 IPO price, SFX has a market value of about $1.05 billion, based on the terms of the offering.

While the company’s festivals rely on younger customers to buy tickets, electronic dance music isn’t a fad, Sillerman said. There already 23 separate sub-genres, all with dedicated fan bases, he said.

“Just as someone was a fan of the Allman Brothers wouldn’t go see U2, neither would a fan of trance go see dubstep exclusively,” Sillerman said.

UBS AG, Jefferies Group LLC and Deutsche Bank AG led SFX’s IPO.

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.