Beatport Sells Out: SFX Entertainment Buys Music Website for Undisclosed Sum
|AP Photo/Greg Campbell|
|SFX Entertainment's Robert F.X. Sillerman in front of Graceland.|
According to the New York Times, SFX Entertainment, which owns a stake in the Opium Group (Mansion, Set, Cameo) and is in the midst of negotiating a deal with Miami Management Group (LIV, Arkadia, STORY), purchased Beatport for an undisclosed sum, though two insiders say it was just over $50 million.
Spearheaded by SFX Entertainment founder Robert F.X. Sillerman, the multimillion-dollar deal is only a fraction of a bigger billion-dollar dream built around electronic dance music.
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"Beatport gives us direct contact with the D.J.'s and lets us see what's popular and what's not," Sillerman says in an interview with the New York Times. "Most important, it gives us a massive platform for everything related to E.D.M."
Over the past year, SFX has worked with promoters Disco Donnie Presents and Life in Color to produce live music events around the country, an area of business Sillerman is quite comfortable with.
The businessman quadrupled a $1.2 billion investment when he sold his SFK network of concert promoters to Clear Channel Entertainment in 2000, now the core of Live Nation's concert division, according to the Times.
"I'm confident we'll do an excellent job empowering [new promoters] to be as good as they can be," Sillerman said in a different Times interview last summer. "I'm also confident that we will create a better experience for the fans. Can we monetize that? If we can, this will dwarf the first SFX. That's the whole game." Beatport's CEO, Matthew Adell, thinks the SFX deal will only improve his company's already-lucrative business model.
"We already are by far the largest online destination of qualified fans and talent in the market," he says, "and we can continue to grow that."
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