SFX Stock Continues Descent

SFX Entertainment shares appear to be tanking in the hours after Nasdaq’s opening bell Aug. 17, and the release of CEO Robert Sillerman’s reaffirmation of his intention to take the EDM company private, despite the attempt that appeared to crash Aug. 13.

Citing “changed market conditions,” Sillerman said he will submit a revised offer for outstanding SFXE shares, “in a manner that reflects the reality of where the stock has traded since his original and subsequently revised offers to purchase those shares.”

Sillerman’s original tender offer of $5.25 died when he was unable to produce financing by a deadline set and extended by the SFX board. Since his “going private” intentions first became public Feb. 24, SFXE shares have tanked by more than 60 percent to an all-time low of $1.25 in early trading Aug. 17 (closing at $1.33).

Sillerman also notes he originally proposed to purchase shares he didn’t already own back in February for $4.75. Despite stock closing at $4.12 May 22, the offer was raised to $5.25 four days later.

SFX has a special committee of independent directors that is considering a revised proposal submitted by Sillerman, and is to make a recommendation to the full board, according to a statement.

“As I have done from the beginning of this process, I will continue to work cooperatively with the special committee as it seeks to obtain the best possible price for the outstanding stock,” Sillerman said. However, it doesn’t necessarily mean he will tender another offer, alone or with others.

“Mr. Sillerman noted that he and his financial advisers are continuing to examine options, including the possible involvement of strategic partners,” the statement reads.