SFX Entertainment Inc.

Robbins Arroyo LLP: Acquisition of SFX Entertainment Inc. (SFXE) by an Affiliate of Chairman and CEO Robert F.X. Sillerman May Not Be in Shareholders’ Best Interests

Robbins Arroyo LLP is investigating the proposed acquisition of SFX Entertainment Inc. (NASDAQ: SFXE) by an affiliate of the Company’s Chairman and CEO Robert F.X. Sillerman. On May 26, 2015, the two parties announced the signing of a definitive merger agreement pursuant to which Robert Sillerman will acquire SFX. Under the terms of the agreement, SFX shareholders will receive $5.25 in cash for each share of SFX common stock.

Is the Proposed Acquisition Best for SFX and Its Shareholders?

Robbins Arroyo LLP’s investigation focuses on whether the board of directors at SFX is undertaking a fair process to obtain maximum value and adequately compensate its shareholders.

As an initial matter, the $5.25 merger consideration is below the target price of $7.50 set by an analyst at Rhino Trading Partners LLC on November 21, 2014, and $7.00 set by an analyst at Jeffries on March 13, 2015. In the last three years, SFX traded as high as $13.39 on October 9, 2013, and most recently traded above the target price – at $5.35 – November 5, 2014.

On May 11, 2015, SFX reported strong quarterly earnings results for its first quarter 2015. Revenue for the quarter was $52.2 million, an increase of 56.6% from the first quarter of 2014. In commenting on these results, SFX Chairman and Chief Executive Officer Robert F.X. Sillerman remarked, “The progress SFX continues to make with our operating initiatives, including the successful re-launch of Beatport as the leading mobile and streaming app for EDM fans around the world, reinforces my belief that value is being created in the business. In addition, the U.S. debut last weekend of Rock in Rio in Las Vegas was a key reminder of the power of our global brands.”

In light of these facts, Robbins Arroyo LLP is examining SFX’s board of directors’ decision to sell the company now rather than allow shareholders to continue to participate in the company’s continued success and future growth prospects.

SFX shareholders have the option to file a class action lawsuit to ensure the board of directors obtains the best possible price for shareholders and the disclosure of material information.

SFX shareholders interested in information about their rights and potential remedies can contact attorney Darnell R. Donahue at (800) 350-6003, or you can complete the form below and we will contact you directly.

 

Shareholder Information

Items marked with an asterisk (*) are required information.

First Name * Last Name *
Address City State/Province *
ZIP/Postal Code Country/Region Phone *
E-mail * Confirm: E-mail *

Shares Purchased:
Number of Shares: Buy Date : Price Per Share:
example: 125 example: MM/DD/YYYY example: 30.00
transaction:
transaction:
transaction:
transaction:
transaction:
If you have additional transactions or comments, please input the information below:

Shares Sold:
Number of Shares: Sell Date : Price Per Share:
example: 125 example: MM/DD/YYYY example: 30.00
transaction:
transaction:
transaction:
transaction:
transaction:
If you have additional transactions or comments, please input the information below:

Please Note: Neither the submission to nor the receipt of information by Robbins Arroyo LLP or one of its attorneys through this website constitutes an agreement by our firm to represent the individual and does not create an attorney-client relationship. Please do not send confidential or sensitive information through this website. This information should be communicated through a direct contact with an individual at the firm.

* I have read the disclaimer information
+=

    Send This Post

    Tags: