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SFX to sell Beatport

By | Published on Wednesday 2 March 2016


Anyone want a streaming service? Just think, play your cards right, and you could get yourself one of those multi-million dollar mechanical rights lawsuits that are so fashionable at the moment. And here’s your chance, because SFX is selling off digital music platform Beatport, with marketing company FameHouse also being considered for the chop.

This news comes, of course, as the former dance music powerhouse struggles through bankruptcy. According to Billboard, a new court filing states that SFX has already spoken to 24 possible bidders for the Beatport website, download store and streaming service, which the company paid $50 million for in 2013. Bids are due by 28 Apr, with the final sale going to auction on 3 May. The sale will be put forward for court approval on 5 May.

FameHouse, meanwhile, was also purchased in 2013, and was then absorbed into SFX’s FX-1 marketing platform. This week’s court filing reportedly says that the firm’s backers no longer consider FameHouse “core” to SFX’s activities, hence the decision to sell it off to raise a bit more cash. Potential buyers are now being sought. What this means for SFX’s other marketing agency assets isn’t clear.

By the way, we can’t guarantee buying Beatport will get you a trendy mechanical rights lawsuit. Those 24 suitors need to do some due diligence to check that Beatport has been as slap dash as everyone else in sorting out the US mechanical rights in the songs it streams.