SFXE ended Tuesday $1.32 down 4.23% – You get the feeling that Bob Sillerman could stand on his head in the middle of Wall Street and no one would by a ticket to see him. SFXE stock fell another 9% midday on Monday to all time low of $1.26. The stock had shed 26% on Friday after CEO Sillerman missed a Thursday deadline to finance a stock buyback. Today, Sillerman came back with new buyback promises.
Monday Robert Sillerman, CEO and Executive Chairman of SFX Entertainment (SFXE) reaffirmed his intention to take the company private. After missing a Thursday deadline that shaved more than 1/3 off the company’s already battered stock price, Sillerman still promised to make a buyback offer “that reflects the reality of where the stock has traded since his original and subsequently revised offers to purchase those shares.”
Shares of SFX have experienced a decline of more than 62% since the close of the market on February 24th – the final day of trading prior to the public disclosure of Sillerman’s initial offer to buy back stock.
On Friday the SFX board agreed to keep open a bidding period for the company until October 2, a period that would include its peak festival season.
“As I have done from the beginning of this process, I will continue to work cooperatively with the special committee as it seeks to obtain the best possible price for the outstanding stock,” Sillerman said. Thus far, his latest buyback pledge did little to calm the market.