Fire Sale At SFX Entertainment

SFX Entertainment, a purveyor of electronic dance music (EDM), is currently exploring a fire sale of its assets, sources told the New York Business Journal.

The New York-based company, known for producing live events and festivals, overpaid for a number of properties it acquired over the years and "now the value has bottomed out," one source noted.

Between the inflated price tags of its M&A deals and a sliding stock price, the assets of SFX (NASDAQ: SFXE) could be made available at a huge discount.

CEO and founder Robert Sillerman, who founded the company in 2011, went on a two-year shopping spree, inking deals as a way of solidifying his position in the EDM space. In all, he's estimated to have spent more than $1 billion on acquisitions.

Among the assets it bought over the years that may be up for grabs include:

• Beatport, a music download website,
• Totem OneLove Group Pty Ltd., a producer of Australian electronic music festivals,
• ID&T, an Amsterdam-based producer of dance music festivals that put on the Sensation event at Brooklyn’s Barclays Center in 2014,
• Flavorus, a ticketing company,

Shares of SFX fell 7.5 percent on Monday on the heels of reports that a downpour outside of Atlanta stranded many festival goers of one of SFX's events. The TomorrowWorld festival, which took place over the weekend in Chattahoochee Hills, left SFX holding the bag regarding refunds and lost concessions from what was expected to be a major event with 190,000 people attending over the course of three days.