Mogul to Increase Bets on Electronic Music

Robert F. X. Sillerman is a media executive who transformed the live entertainment business in the 90s, by combining concert promoters into the nationwide powerhouse that became Live Nation. Mr. Sillerman has decided to return to the business and plans to invest in the ever-growing electronic music genre. Sources say that Mr. Sillerman is pursuing independent companies that put on dance festivals, DJ parties and events, where crowds range from the hundreds to the thousands. In an interview last Monday, Mr. Sillerman stated that His first acquisition was Disco Productions. This is a Louisiana based company that was founded by rave promoter, Donnie Estopinal. In addition to the deal with Disco Productions, Mr. Sillerman says that he is in negotiations with 50 other companies, out of which, tentative agreements have been set with 15. He declined to disclose any information regarding the terms of the Disco Production agreement, but expects his new company (SFX Entertainment, revived from his old company)To spend $1 billion in acquisitions within a year. He plans to take the company public this summer. The plan for SFX Entertainment is still being formulated, as stated by Mr. Sillerman. This plan involves using the Internet to connect fans of dance music. There is currently a wave of interest in attending concerts that has less to do with the music and more to with the experience attached to it. This is in reference to the immerse appeal of many large scale dance events. Mr. Sillerman's thoughts is that, "the experience of attending an individual event can be perpetuated and made better by connecting the people, not just when they're consuming the entertainment but when they're away from it." Over the past few years, SFX Entertainment spent $1.2 billion to buy dozens of regional promoters and combined into a national organization. In 2000, Clear Channel Communications bought SFX for $4.4 billion. It later turned its concert division into Live Nation, which merged with Ticketmaster in 2010 to form Live Nation Entertainment. Mr. Sillerman's corporate approach to the concert industry has had its disadvantages. Some say that it has led to higher prices for consumers and has created a competitive bidding process, that has made events far riskier to put on. Live Nation has also had its fair share of issues. Since going public in 2005, it has never turned an annual profit. But, Mr. Sillerman said he believed that the basic business strategy behind combining multiple concert companies was sound. Live Nation has also taken an interest in electronic dance music. Last month they purchased a major British promoter, Cream Holdings,and announced last week that it would be putting on a two-night dance event, called Sensation, at the new Barclay's Center in Brooklyn in October. 


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1)  http://www.nytimes.com/2012/06/06/business/media/mogul-to-increase-bets-on-electronic-dance-music.html?_r=2&adxnnl=1&ref=livenationinc&adxnnlx=1339160455-oOXbqapTfzVbOlqpqV5CtA