SFX Buys Beatport For $50 Million

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-- SFX Buys Beatport For $50 Million

Posted by DjWoody on Feb-27-2013 05:56:

SFX Buys Beatport For $50 Million

SFX Buys Beatport For $50 Million

http://mediadecoder.blogs.nytimes.c...nce-music-site/

Posted by Juan Paulino on Feb-27-2013 06:30:

Hmm interesting...

Posted by tehlord on Feb-27-2013 09:42:

Not sure how they came to that figure.

Posted by cryophonik on Feb-27-2013 15:51:

quote:
Originally posted by tehlord
Not sure how they came to that figure.

My sources are telling me that SFX originally offered $10M, until Beatport upped the ante by showing them this page.

Posted by djshire on Feb-27-2013 16:17:

quote:
Originally posted by cryophonik
My sources are telling me that SFX originally offered $10M, until Beatport upped the ante by showing them this page.

Posted by tehlord on Feb-27-2013 16:20:

quote:
Originally posted by cryophonik
My sources are telling me that SFX originally offered $10M, until Beatport upped the ante by showing them this page.

Seems legit

Seriously though, Beatport would have to be making $10 million pa profit to sell itself for that money. I really doubt that's happening.

Posted by Whip_lash on Feb-27-2013 20:06:

I thought Bp was worth way more then 50million... thats really surprising. It IS the biggest site for its category.

Posted by Looney4Clooney on Feb-27-2013 20:09:

no it isn't. PRetty sure Deadmau5 Skrillex and SHM sales on itunes in one year account for more than BP entire sales since it was running. Beatport is and always has been inconsequential.

Posted by tehlord on Feb-27-2013 20:23:

I have heard from a source that I believe to be reliable that BP sales are approximately 2% of what iTunes sales are.

Apart from people that go on EDM forums, nobody knows who BP are. I expect the $50 million price tag is more to do with promoting the idea that Beatport IS a destination to go to rather than actually already being the destination to go to.

Posted by DJ RANN on Feb-27-2013 20:29:

quote:
Originally posted by tehlord
Seems legit

Seriously though, Beatport would have to be making $10 million pa profit to sell itself for that money. I really doubt that's happening.

They probably don't do that much in revenue in a year, but the point is they are the leading outlet for EDM and a direct link to every DJ out there. For any corporate entity wanting to seriously get in to EDM market, it's really the obvious choice, so they're paying for the potential, not the actual value, and TBH, that's exactly how the .com industry works. Instagram was not generating sales anything close to justifying a $100m price tag, let alone $1bn. They buy these things to control the market, not recoup from revenue.

Posted by tehlord on Feb-27-2013 20:49:

This is true, although I'd put my $50 million into starting something fresh and desyroying Beatport.

I would wear a cape while doing it.

Posted by david.michael on Feb-27-2013 21:18:

quote:
Originally posted by DJ RANN
They probably don't do that much in revenue in a year, but the point is they are the leading outlet for EDM and a direct link to every DJ out there. For any corporate entity wanting to seriously get in to EDM market, it's really the obvious choice, so they're paying for the potential, not the actual value, and TBH, that's exactly how the .com industry works. Instagram was not generating sales anything close to justifying a $100m price tag, let alone $1bn. They buy these things to control the market, not recoup from revenue.

Spot on.

It would be cheaper to buy Beatport for 50M than to replace it at this point.