After announcing in February it was filing for bankruptcy protection, debt-ridden SFX Entertainment will auction off digital streaming/download site Beatport to the highest bidder, according to a motion filed in the Delaware bankruptcy court yesterday by Kurtzman Carson Consultants which stated “given SFX’s current financial condition, SFX cannot afford to make additional investments in Beatport as may be needed in the future, and therefore has decided to sell the Beatport assets.”
Executives at financially troubled SFX, which also presents an array of large-scale EDM events, apparently negotiated with 24 interested buyers. As of now, 18 have signed non-disclosure agreements and are in the process of performing due diligence. Bids for Beatport — which claimed last month to be operating “business as usual” during SFX’s “reorganization” — are due April 28 ahead of an auction, in increments of no less than $250,000 in cash or cash and non-cash considerations, on May 3. The court will approve the sale of Beaport on May 5.
Beatport lost $5.5 million in 2015. The company recently added a live and archived video service which could be appealing to a buyer.