While SFX Entertainment had no trouble raising $260 million for their IPO, keeping people interested (and invested) has been troubling. The day the shares debuted, the price per share fell from $13 to $11.98. Some might have felt that this could've been normal, especially with growing fears over the national debt and government shutdown (or whatever other problems we learn watching Bill Maher). In any case, it looks like the price has continued to plummet, with the price per share ending at $9.50 at the close of Thursday.
This doesn't put a halt to SFX's spending, though; at this year's Amsterdam Dance Event (ADE), Shelly Finkel (the head of acquisitions at SFX) Shelly Finkel and ID&T founder Duncan Stutterheim revealed that ID&T is now fully owned by SFX Entertainment, who previously held a 75% stake in the Dutch company. Stutterheim is quoted as saying that “[i]nstead of the previous 75-percent, ID&T is now going to be 100-percent owned by SFX. Now it’s very clear, I work for SFX. I will be working at head office in Europe, and we’re going to create still the same shows. But from this point, ID&T and SFX will be together.” In speaking about why they joined SFX completely, Stutterheim explained:
“We had worked together in the U.S., but at that point we really believed that we wanted to be a Dutch company creating shows, and we believed we had a strong market across a number of countries…but sometimes the idea needs to incubate.
“As we continued to work together, at some point a list came up of the possibilities of what could be done if we sold the company. TomorrowWorld was an example of that; the festival cost 16 million dollars to put up. Those are amounts of money that we just don’t have. We are a big company, but we can’t invest that kind of money. So it was an opportunity for the company to grow.”
Will this announcement save the falling SFX share price? Only time will tell.