WPP Invests In SFX To Expand Content Capabilities
With content becoming more important in the marketing strategies of advertisers, agency holding company WPP has made an investment in SFX
Entertainment, the companies confirmed Monday. The investment is estimated at $10 million.
SFX is run by Robert F.X. Sillerman, the media entrepreneur. The company has created a global digital platform centered on electronic dance music through acquisition and partnership with festivals, events, clubs and online brands. SFX claims a collective audience of 100 million.
WPP Chief Executive Sir Martin Sorrell stated: “We recognize the value in what SFX is creating and believe we can help bring this valuable audience to our agencies’ global clients. The challenge of navigating through digital and social media is daunting for clients and we believe this partnership can further develop WPP’s content capabilities, particularly in new media in the youth consumer segment.”
Once a radio station executive, Sillerman collected and developed a huge portfolio of his own radio outlets, outdoor advertising and concert promotion businesses that he ultimately sold to Clear Channel Communications for about $4.4 billion in 2000. Those assets form the basis of Clear Channel subsidiary Live Nation.
Sillerman began his dance music company last year, reviving the name of his earlier entertainment company SFX Entertainment. Sillerman has said he will use part of his cash hoard to acquire companies that orchestrate dance festivals, D.J. parties and related activities.
Earlier this month, he bought a string of Miami-area nightclubs operated by The Opium Group and Miami Marketing Group. Last month, the
company bought music site Beatport for an estimated $50 million. Earlier, he acquired Disco productions for an undisclosed sum.
“There is a huge, global, fragmented audience of 16- to-34-year-old dance music consumers that is very difficult to reach, stated Sillerman. “In developing our global platform, we will be able to offer brands the opportunity to connect directly through events, festivals, online and mobile media.”