Robert F. X. Sillerman made the concert business more corporate and wants to do the same with the latest trend in the music industry.
Echoing his strategy in the concert business, Mr. Sillerman is pursuing independent companies that put on dance festivals, D.J. parties and other events where the crowds might range from a few hundred people to tens of thousands. He said in an interview on Monday that his first acquisition was Disco Productions, a Louisiana company that was founded by a rave promoter, Donnie Estopinal, and puts on events throughout the country.
Mr. Sillerman, 64, said that in addition to that deal he was in negotiations with up to 50 other companies, and had tentative agreements with about 15 of them. He declined to disclose terms of the Disco Productions deal, but said that he expected his new company — which is called SFX Entertainment, reviving the name of his earlier concert business — to spend $1 billion on acquisitions within a year, and that he wanted to take it public this summer.
The plan for SFX, Mr. Sillerman said, is still being formulated but will involve using the Internet to connect fans of dance music. If his strategies from the 1990s are a guide, he might also want to deliver this aggregated audience to major advertisers and marketers.
Read More: http://www.nytimes.com/2012/06/06/business/media/mogul-to-increase-bets-on-electronic-dance-music.html