October 25, 2013

Live events producer acquires three startups

In an effort to improve its position in the electronic dance music industry, live events and content producer SFX Entertainment is buying three startups, according to a report in TechCrunch.

The first, Arc90, is the maker of the Readability app, one of the many read-it-later services available for computers and mobile devices. The second, Fame House, is a marketing agency that specializes in digital technology. The third, Tunezy, is a music commerce platform that seeks to personalize the way in which people interact with their favorite songs and artists.

"Arc90, Fame House and Tunezy are leaders in each of their fields and bring extraordinary talent to SFX," Robert F.X. Sillerman, Chairman and CEO of SFX Entertainment, said in a statement. "These deals are consistent with our commitment to bring [electronic music culture] fans around the world more of what they love, 365-days-a-year, and to be world-class in all our areas of focus."

According to the TechCrunch article, SFX needs to make sure that consumers—and investors—know that it has plans to monetize its offerings. Recently, the company's stock fell from a debut of $13 per share to $9.77 per share. Clearly, it hopes that its technology acquisition will begin to change that.

"These three acquisitions point squarely at digital content, and a shift to getting users to paying for goods and engaging online as much as they pay to be involved in the live club events," the article read.

Perhaps the combination of a web reader, a music seller and marketing agency will provide the perfect combination of talent to move forward.