Sillerman on to Third Attempt at Privatization
For the second time now, SFX Chairman and CEO Robert Sillerman has failed to materialize on his bid to take SFX Entertainment private. Despite public reception to previous bids, Sillerman has proposed a third offer; $3.25 a share for the outstanding 61% of shares he does not currently own.
In his letter, Sillerman claims that “I [Sillerman] am prepared to move expeditiously towards the negotiation and execution of definitive agreements for my proposed acquisition transaction. No further diligence review or analysis is required.”
Additionally, his letter expressly states the non-binding nature of his offer, and further states that he has full right to "withdraw and modify" as he sees fit.
In my opinion, this sounds like Sillerman is gearing up for a hail-mary while making sure to cover his own ass. Moreover, in the past 4 months his offer has dropped by two dollars a share, and in spite of his revised offer, SFX shares closed at $1.17, less than half of what he sought. Sillerman seems to be flailing after his latest failure to follow through on a deadline (which was extended) and his statements about "no further diligence review or analysis" being required to execute his offer's latest incarnation lead me to believe it's poorly planned, funded, and ultimately will follow in the footsteps of his previous offers.
For Sillerman's full letter follow the link here.
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