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WPP takes stake in SFX Entertainment WPP takes stake in SFX Entertainment
(6 months later)
Sir Martin Sorrell's WPP has taken a stake in SFX Entertainment, the company headed by former American Idol-to-Elvis Presley rights owner Robert Sillerman.Sir Martin Sorrell's WPP has taken a stake in SFX Entertainment, the company headed by former American Idol-to-Elvis Presley rights owner Robert Sillerman.
WPP, which is expected to reveal that it has taken a small stake in the dance-music events company on Monday, has taken similar strategic holdings in companies, including Vice Media and the Weinstein Company.WPP, which is expected to reveal that it has taken a small stake in the dance-music events company on Monday, has taken similar strategic holdings in companies, including Vice Media and the Weinstein Company.
The amount of the investment is not expected to be disclosed, however it is typical of WPP to take strategic stakes of just a few million pounds.The amount of the investment is not expected to be disclosed, however it is typical of WPP to take strategic stakes of just a few million pounds.
It was a smaller one for his company; Sorrell compared it to WPP's investments in Vice, the Weinstein Company and others.It was a smaller one for his company; Sorrell compared it to WPP's investments in Vice, the Weinstein Company and others.
"We recognise the value in what SFX is creating and believe we can help bring this valuable audience to our agencies' global clients," said Sorrell. "The challenge of navigating through digital and social media is daunting for clients and we believe this partnership can further develop WPP's content capabilities, particularly in new media in the youth consumer segment.""We recognise the value in what SFX is creating and believe we can help bring this valuable audience to our agencies' global clients," said Sorrell. "The challenge of navigating through digital and social media is daunting for clients and we believe this partnership can further develop WPP's content capabilities, particularly in new media in the youth consumer segment."
Sillerman launched the latest incarnation of SFX Entertainment in 2011, and last month acquired music download site Beatport in a deal reported to be worth about $50m (£33m).Sillerman launched the latest incarnation of SFX Entertainment in 2011, and last month acquired music download site Beatport in a deal reported to be worth about $50m (£33m).
He has also bought other businesses in the dance-music sector, including Disco Productions and Miami Beach venue owner Opium Group, and has said that he has $1bn to spend on acquisitions.He has also bought other businesses in the dance-music sector, including Disco Productions and Miami Beach venue owner Opium Group, and has said that he has $1bn to spend on acquisitions.
"The investment from WPP is an exciting step for us as it underlines what we have believed from the start," said Sillerman. "There is a huge, global, fragmented audience of 16-34 year old dance music consumers that is very difficult to reach. In developing our global platform, we will be able to offer brands the opportunity to connect directly through events, festivals, online and mobile media.""The investment from WPP is an exciting step for us as it underlines what we have believed from the start," said Sillerman. "There is a huge, global, fragmented audience of 16-34 year old dance music consumers that is very difficult to reach. In developing our global platform, we will be able to offer brands the opportunity to connect directly through events, festivals, online and mobile media."
Sillerman previously built up CKX, the US entertainment company behind American Idol, So You Think You Can Dance? and rights relating to Elvis Presley and Muhammad Ali. The business was sold to Apollo GLobal MAnagement for $509m in 2011.Sillerman previously built up CKX, the US entertainment company behind American Idol, So You Think You Can Dance? and rights relating to Elvis Presley and Muhammad Ali. The business was sold to Apollo GLobal MAnagement for $509m in 2011.
In the 1990s Sillerman spent $1.2bn creating a network of concert promoters under the name SFX, which he sold to Clear Channel Entertainment in 2000 for $4.4 billion and is now part of Live Nation.In the 1990s Sillerman spent $1.2bn creating a network of concert promoters under the name SFX, which he sold to Clear Channel Entertainment in 2000 for $4.4 billion and is now part of Live Nation.
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