Beatport sale by SFX will no longer happen
The Beatport sale by SFX Entertainment is officially off the cards. The company has come to the realisation that owning Beatport is vital for the continued business of SFX.
SFX declared bankruptcy six months ago and a few months later they announced that the Beatport sale would take place through an auction during May of this year. This planned auction was then postponed.
READ: SFX Entertainment CEO Robert Sillerman Speaks Out
Back to business
For everyone on the ground floor at Beatport over these previous months, the future was unclear and unpredictable. Now that the Beatport sale is off the table things are going to perhaps flow a lot more smoothly for them.
The company’s restructuring included retrenchments and cutting out the editorial section on the site, the events section and even its streaming service. The linear approach to the new Beatport seems to be one that could ensure the company survives along with SFX Entertainment.
Beatport will continue to operate as an online retailer and the changes that have been made is said to have improved the company’s profitability.
“Our renewed focus on the Beatport Store, following our announcement of platform changes in May, 2016, has been well-received and successful. The changes we implemented have laid a strong foundation for Beatport that have dramatically improved its profitability. As a result of these improving trends, SFX has determined that retaining ownership of Beatport is in the best interest of the Company and has withdrawn its motion to sell Beatport through the Chapter 11 process. We look forward to emerging from Chapter 11 in the next few months, as strong and vibrant business, positioned to pursue both organic and strategic growth options. The dedicated Beatport management team is committed to continuing to serve our core DJ customer base and enhancing the quality of our customer experience.” – Beatport statement
Although the Beatport sale is no longer happening, casualties of the SFX financial problems such as the TommorowWorld festival and every other Beatport service aside from the online store were quite severe.
But this announcement that the Beatport sale will no longer take place is good news for producers and labels.
Sourced
