A few months ago, we reported on the merger of music event monolith Live Nation and British concert promoter Creamfields. This heralded the emergence of EDM as a major force in the music industry. This week, that position is further solidified, and it has to do with Live Nation as well, kind of.
Robert F. X. Sillerman, the business executive first responsible for the conglomeration of regional concert promoters into one larger company (which later became Live Nation), is delving back into the industry he helped develop.
With his new company, tentatively SFX Entertainment, Sillerman is pursuing smaller, regional companies that put on nightclub parties, EDM festivals and the like. His first acquisition was Disco Productions, a Louisiana company that puts on shows and parties around the country. According to a press release, Sillerman and his company are currently negotiating with more than 50 other companies and have tentative agreements with 14. This marks a serious foray into the EDM scene, if not a flat out takeover.
SFX plans to spend more than $1 Billion by the end of the year, and take the company public by this summer. Not only is this major for the music industry, Sillerman's company may become one of the fastest growing organization ever.
Sillerman, 64, made his fortune in radio. In the '90s, with his enlightened ideas of conglomeration, he built up the company which would later become Live Nation after selling it for almost 4.5 Billion dollars. This acute business awareness and forward thinking ideas will prove useful for the entrepreneur, as he begins his path to take over the EDM world.
What does this mean for the concert-goer? Well, hopefully more, well organized shows all around the country. Sure, this may backfire, I mean, it all sounds like some pretty cut-throat capitalism, but hey, we'll cross that bridge when we get to it. In the meantime, we'll keep you updated on the situation.
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