LiveStyle is a Los Angeles-based live events conglomerate founded by media entrepreneur Robert F. X. Sillerman. The company was formed in June 2012 as SFX Entertainment - a new incarnation of the previous Sillerman company of the same name, sold to Clear Channel Communications and then spin off in 2005 as Live Nation.
The company focuses primarily on live events and other properties related to electronic music and related cultures. Ownership includes the ownership of major electronic music promoters and festival brands, such as Tomorrowland , Electric Zoo , and 50% of shares in Rock in Rio among others. The company also owns Beatport, an online electronic music store, and Paylogic, an online ticket service provider.
Growing primarily through the acquisition of various electronic dance music properties, SFX became public on NASDAQ on October 9, 2013. However, by 2015, the company began to experience financial problems; in August 2015, the value of the company's stock fell as low as 91 cents. After an unsuccessful bid by Sillerman to buy or sell the company, and the investment of broken options, SFX filed for Chapter 11 bankruptcy protection in February 2016, and Sillerman resigned as CEO. In December 2016, the company emerged from bankruptcy as a private company, renamed LiveStyle, and with former AEG executive Randy Phillips as the new CEO and Charles Ciongoli, formerly of Universal Music Group as Executive VP & amp; CFO.
Video LiveStyle
History
Initial history
SFX Entertainment was formed by Robert F. X. Sillerman in the 1990s. The business model surrounds the acquisition and consolidation of regional concert promoters into a single national entity. In 2000, Sillerman sold the company to a Clear Channel Communications radio broadcasting company for $ 4.4a, USD billion. Clear Channel Entertainment played in 2005 to form Live Nation, and joined Ticketmaster in 2009 to form Live Nation Entertainment. In 2012, Live Nation is the biggest concert promoter in the world.
2012-2013
In June 2012, Sillerman published his intention to focus on the growing electronic dance music market by reviving the SFX brand to form a new conglomerate in the electronic music industry. Similar to previous SFX incarnations, the company's business model focuses on the consolidation and acquisition of independent EDM promoters, along with an additional focus on providing a digital platform for fans to connect. Sillerman is expected to spend nearly $ 1 billion on acquisitions in the first year of operation alone; at the company's launch, SFX is negotiating with about 50 different promoters for possible acquisitions. The first acquisitions of SFX included "Disco" Donnie Estopinal's Disco Productions, Miami nightclub owner, Opium Group and Miami Marketing Group, and the Life in Color tour (later known as Dayglow). However, the Opium Group deal failed during the due diligence phase. As one of Sillerman's first deals, Estopinal helped him in finding other potential acquisition targets.
Unlike the previous SFX, Sillerman intends new companies to focus more on building relationships and experiences for fans. In response to critics who believe that SFX can "commercialize" the underground electronic music industry, Sillerman states that "if you buy a great and successful business, you try to empower them to do what they do." And in this case, what they do is great entertainment.If you or anyone can find an example of someone from SFX who tells them how much it costs to buy a bottle of Cristal in LIV, I will give you a stock of SFX. "Sillerman has stressed his belief that the direct event industry is not can be operated centrally, noting that SFX "is decentralized with full strength invested in the entrepreneur who has made this business."
In January 2013, SFX named Chris Stephenson as chief marketing officer - he was previously CMO Interscope Records, and CEO of Sillerman venture Viggle. SFX also announced a partnership with promoter ID & amp; T Netherlands with a view to organizing North American events - ID & amp; T previously partnered with Live Nation to hold the first American edition of his Sensation tour at Barclays Center in Brooklyn. Sillerman also stated in the Billboard interview that SFX had gained the New Orleans Voodoo Experience festival, though it later became known that this was not really happening (in October 2013, 51% of the majority was sold to Live Nation).
In February 2013, SFX acquired Beatport, an online music store specializing in electronic music. Specifically, Sillerman feels that the website provides a "great platform" for artists and fans to interact with; consistent with his ideals for the company. The following month during the Winter Music Conference in Miami, SFX announces that they will get 75% stake in ID & amp; T, and it will set the spin-off of its flagship festival Tomorrowland known as TomorrowWorld in the Atlanta area in September 2013. The company also received a $ 10 million investment from communications and corporate services WPP marketing.
2013-2015
In June 2013, SFX announced its IPO and began trading on the NASDAQ on October 9, 2013. Sillerman joined Dutch producer Afrojack on the NASDAQ MarketSite that morning to ring the opening bell. After its IPO, SFX also reached an agreement to acquire a digital-focused company; Tunezy fan monetization platform, and Arc90 and Fame House web development companies. He also obtained Totem OneLove, an Australian promoter who organized the Stereosonic festival among others.
In November 2013, SFX acquired Made Event, the organizer of the New York City Electric Zoo festival. Sillerman considers the purchase a strategic move, as the company will now have a stronger presence in the New York market. He also obtained the promoter of Germany i-Motion, the organizer of the Nature One festival, among others, with $ 21 million, and reached an agreement with Roberto Midina, the organizer of the Rock in Rio festival series, to acquire a 50% stake in the new entity which will have a rock music festival. Sillerman also revealed plans to bring the festival to the United States for the first time.
In December 2013, SFX acquired a 75% stake in Paylogic, a European online ticketing company. Paylogic service is clearly used by ID & amp; T, and should be phased out across other SFX event brands from time to time as agreements with other providers (such as Eventbrite and Disco Donnie) expire. Sillerman chose Paylogic because of its ability to handle the "big jump" ticket sales, as shown at TomorrowWorld , the first US event to use the system.
On January 6, 2014, iHeartMedia, Inc. (previously Clear Channel Media and Entertainment, a company that, incidentally, Sillerman sold the original SFX in 2000) announced a marketing partnership with SFX, which will see the two companies collaborating on EDM-related content for their digital and terrestrial radio channels, including 20 counts backward Beatport (to be aired on some major Channel era hit radio stations), national talent search, and "original live music series" in its Jingle Ball concert style. The partnership extends to iMeartMedia-based EDM outlets such as Evolution , which includes digital radio stations at iHeartRadio, and terrestrial outlets in Boston and Miami. IHeartMedia staff, including John Sykes, believe that the deal (especially the Beatport countdown event) will help provide a higher level of national exposure to current and future EDM artists - its syndic division also produces American Top 40 .
In February 2014, SFX acquired React Presents - Chicago Spring Awakening organizers, along with Clubtix and West Loop Management. In April 2014, SFX announced a partnership with Simon Cowell's Syco Entertainment and T-Mobile to produce a new, focused EDJ television reality series, Ultimate DJ .
In September 2014, SFX acquired Plus Talent promoter from Brazil, which organized XXXperience and Tomorrowland Brazil. On October 10, 2014, SFX acquired Listn, a Montreal-based startup that developed a mobile app that allows users to browse their friends' music collections. Listn employee moved to Beatport, and the service was removed.
In November 2014, despite total revenues of $ 143.5 million in the third quarter of 2014 - figures spurred by the many SFX-managed fairs that took place during the quarter, Sillerman reported that SFX is undergoing a significant restructuring and consolidation process that will involve "shifting insignificant tasks and labor shortages, all of which will go to improve efficiency and, of course, to increase our EBITDA. " Later in the month, SFX acquired a 50% stake in ALDA Events, a Dutch promoter who produced concert tours of Armin van Buuren and Hardwell, along with the Amsterdam Music Festival. Alda will continue to operate independently, but its founder, Allan Hardenberg, also joined SFX as managing director of the Global Touring division.
On January 26, 2015, SFX announced an executive restructuring: Greg Consiglio was appointed president and chief operating officer of SFX Entertainment, while Kevin Arrix was appointed chief executive officer and executive vice president. Both Consiglio and Arrix hold the same position in Viggle. ID & amp; T's Ritty van Straalen became the CEO of live entertainment. In addition, it was announced that SFX would, under a three-year agreement, assume the operation of Viggle's sales staff, who would work for SFX and Viggle; Sillerman explains that "the Viggle Revenue team brings immediate new dimensions, while incorporating SFX inventory provides Viggle with a more attractive scale for a broader advertiser base."
Decline, bankruptcy
On February 25, 2015, Sillerman announced a proposal to buy a public share of SFX for $ 4.75 per share to take the company personally, and support potential sales exploration. He feels that the offer will provide "substantial value and flexibility to all shareholders", and is a "substantial premium" for its current value.
In August 2015, the value of SFX shares has declined significantly, as low as 91 cents per share. On August 14, 2015, the company failed to take a takeover bid, initiated by Sillerman, for $ 5.75 per share. According to Los Angeles Times, SFX Entertainment is looking for a "strategic alternative" through October 2015 to determine the company's sales. The Company extends the deadline for a takeover bid in October 2015. In November 2015, Sillerman violated a $ 30 million investment in SFX Entertainment. Also in November, Sebastian Solano, founder of SFX's Life in Color brand, was appointed CEO of ID & amp; T North America and Made Event. On January 13, 2016, the company announced that it had defaulted on a $ 10.8 million loan after the loss of a January 3, 2016 interest payment of $ 3 million. On January 15, 2016, SFX announced that it had received $ 20 million in new funding.
On February 1, 2016, SFX Entertainment filed for bankruptcy chapter 11. The company plans to restructure as a private entity, and engage in debt-for-equity exchange with bondholders. Sillerman also resigned as an effective CEO immediately; he will remain chairman and retain his 40% stake in the company. From his situation, he stated that "the trust expression of our lenders is a testimony to the spirit and potential of our business", and that with restructuring, "we have the opportunity to achieve everything SFX can and will do." Bankruptcies and transitions do not affect any of the SFX festivals, though the fate of the US TomorrowWorld festival (whose 2015 edition is damaged by infrastructure problems due to bad weather) is uncertain. The Tomorrowland Festival of Belgium and Brazil is managed directly by ID & T and local partners, and is unaffected.
On March 1, 2016, SFX announced its intention to sell Beatport and Fame House at auction. In May 2016, the Beatport auction was suspended, and the site was cutting off the original content and streaming business. Later that month, Fame House sold to Universal Music Group for $ 1 million and assumed $ 400,000 debt. Flavorus was sold to Vivendi for $ 4 million.
In an interview with Billboard, Sillerman acknowledged that there was "no easy answer" around why the company collapsed, but added that he did not "regret the disappointment and anger" of his staff because he was just out of disappointment over the company's performance. Former employees also interviewed by Billboard felt that the company did not do enough to increase its scale, and that the company was not involved in centralization, resulting in a lack of coordination between its subsidiaries.
Appear, re-branding
In December 2016, SFX emerged from bankruptcy, reducing its debt of $ 400 million. Randy Phillips, a former AEG Live, was appointed the company's new CEO. The company is also renamed LiveStyle, with its headquarters located in Los Angeles. Phillips feels that SFX as a brand has gained a negative reputation, and that the company initially collapsed because of too much focus on fast growth, IPO, and Sillerman "[selling] a story about sponsors", which "should be the icing on the cake - not the cake itself. "Phillips also began to describe the company as oriented to electronic music in general rather than EDM, and stated that some of their events (such as Mysteryland) will expand their scope (similar to the Coachella Festival, owned by their former employers) others will remain oriented to electronic music.
Maps LiveStyle
Assets
Festival and promoter
- Disco Production
- Disco Donnie Presentation
- Sun City Music Festival
- ID & amp; T (75% share)
- Energy
- Mysteryland
- Sensation
- Q-dance
- Tomorrowland
- Live in Color
- Rock in Rio (50% share)
- Rock in Rio
- Stone in Rio Lisboa
- Stone in Rio Madrid
- Stone in Rio USA
- Miami Marketing Group
- LIV
- Stories
- i-Motion
- Nature One
- Create an Event
- Electric Zoo
- Totem OneLove
- Stereosonic
- Creamfields Australia
- b2s (50% share)
Digital
- Arc90
- Beatport
- Paylogic (75%)
- Tunezy
References
External links
- Official website
Source of the article : Wikipedia
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