After a particularly harrowing year, 2016 has kicked off on a somewhat more promising note for EDM conglomerate SFX Entertainment. After promising to invest $1 billion annually into the global EDM industry in 2012, the company has underwent a plummeting stock value largely believed to have been the result of its mismanagement of various electronic music brands.
Now, however, SFX has announced that it has received $20 million in capital that will keep it afloat for the immediate future. Before the announcement, the company had faced an especially volatile week. As word broke to the masses of the company’s retainment of FTI Consulting – which was involved the bankruptcies of Lehman Brothers and General Motors, among others – its stock price dropped to historic lows, bottoming out at an infinitesimal eight cents per share.
The announcement has raised SFX’s stock value by 57 percent, but is ultimately nowhere near enough to repair the company’s insurmountable blunders. Even at its present value of 12 cents per share, SFX is valued at less than a hundredth of what it was at the time of its 2013 IPO.
Considering the far-reaching implications of SFX Entertainment‘s involvement in electronic music, it’s no exaggeration to assert that how the company handles its immediate financial woes will make ripples felt by the scene at large in 2016.
