For the second time, entertainment mogul Robert Sillerman has made an offer to the shareholders of his company, SFX Entertainment, in an attempt to take it private once more. 2015 has turned out to be a disastrous year for the company between its plummet in stock price and a handful of looming lawsuits, and Sillerman’s last-ditch effort to return SFX to some semblance of profitability stands as further proof that it’s on its way out.
In a letter, Sillerman informed SFX’s board of directors of his non-binding offer to purchase any shares not currently owned by him for $3.25 in cash – nearly three times its current stock value as of this writing. $1.75 of that amount would be made as an up-front payment. The offer also includes up to $50 million in pro-rata payments for loans he’s made to the company, and a $1/share contingent payment right if he’s able to sell the company within five years.
In one passage of the letter, Sillerman states that he is “prepared to move expeditiously towards the negotiation and execution of definitive agreements for my proposed acquisition transaction.” In another, however, he hedges any potential missteps in his offer with this litigiously worded disclaimer:
This letter does not constitute any binding commitment with respect to the matters reflected herein. I reserve the right to withdraw or modify the proposal in any manner. No legal obligation with respect to any transaction shall arise unless and until the execution of mutually acceptable definitive agreements.
Check back for further updates on the state of SFX Entertainment as soon as the company or its partners make them available.