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Beatport is going to auction

SFX Entertainment can no longer invest in the online music store

  • Dave Turner
  • 1 March 2016
Beatport is going to auction

The SFX Entertainment bankruptcy case has revealed the company is looking to offload Beatport.

Documents produced in court state that it's not financially viable for SFX to invest in the digital music store any more, according to IQ Mag.

The publication obtained the court paper from Kurtzman Carson Consultants, which reads: "After the acquisition, SFX made significant financial investments in Beatport.

"While the Beatport Assets are valuable to the SFX enterprise, 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."

All bids must be submitted by April 28, before an auction takes place on May 3, with potential buyers having to meet requirements such as complying with Beatport's customer data privacy policy, providing proof of financial stability and agreeing that the offer cannot be reversed before the sale date.

A Beatport statement reads: "We are both flattered and encouraged by the number of companies that have already expressed an interest in acquiring Beatport.

"For over 12 years, Beatport has served as the global source for electronic music worldwide. This legacy, and the complete music experience we have built around it, will continue to guide our vision. As always, our priority remains our customers and partners. We are excited for the future."

In one of many problems for SFX, Beatport had to briefly freeze label royalty payments last year as SFX attempted to go private.

Read more of the information surrounding Beatport here.

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