Why Are Shares of SFX Entertainment Falling?

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Oct. 10 (Bloomberg) -- SFX Entertainment, 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. Cristina Alesci reports on Bloomberg Television's "Bloomberg West." (Source: Bloomberg)

Tomorrow world festival and talked to the ceo of the company.

What happened here?

Was it a case of not a lot of demand?

Certainly not the best way to kick off your as a publicly traded company.

I hear that they got too aggressive on the size of the offering and that right at the higher end of the range and issued more shares, maybe more than the market could bear and the stock price fell.

Let's not forget who was behind this.

The ceo has done this before in the early 1990s when he rolled out was the majority of the rock 'n roll concert producers and he made a decent amount of money doing that.

He is looking to do it again here, same idea except with iconic dance music with his popular with the millennial generation.

Are you saying i am not in that generation?

He is hoping to attract corporate interest and sponsorship into the space which has not been particularly institutionalized yet.

Majority of the rock 'n roll concert producers and he made a decent amount of money doing that.

He wants to make it more as to tuition lies.

Some of these have been successful in europe.

Are the millennial's in the u.s. just as sticky when it comes to this kind of music?

That's the question.

You talked to a lot of millennial's there.

They spend a lot of money on going to these things.

Even though we see the shares fall in the first two days of trading, are you hearing anything about the longer-term outlook?

What the team was trying to pitch to investors is this is not the typical concert business.

The typical concert business am of the margins are low because you have to book a big act like madonna or u2. the a lot of the money goes to paying those artists.

The concert promoter is making money off of parking or concessions.

He says that this dance music, these festivals are about the festival itself.

There are 100 djs and they are not all hold at to any one of those djs to the tune of that much money but they do make a ton of money.

We will keep our eyes on sfx entertainment and we will be "on the markets" again in 30

This text has been automatically generated. It may not be 100% accurate.


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