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SFX Buys Beatport For $50 Million
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| Juan Paulino |
| Hmm interesting... |
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| tehlord |
| Not sure how they came to that figure. |
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| cryophonik |
| 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. |
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| djshire |
| 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. |
:haha: |
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| tehlord |
| 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 :p
Seriously though, Beatport would have to be making $10 million pa profit to sell itself for that money. I really doubt that's happening. |
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| Whip_lash |
| I thought Bp was worth way more then 50million... thats really surprising. It IS the biggest site for its category. |
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| Looney4Clooney |
| 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. |
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| tehlord |
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. |
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| DJ RANN |
| quote: | Originally posted by tehlord
Seems legit :p
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. |
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| tehlord |
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. |
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| david.michael |
| 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. |
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