Music News

Robert Sillerman's SFX Entertainment and Opium Group: "The Deal Is Off"

The $1-billion EDM pledge.

That's what has most recently made SFX Entertainment mogul Robert F.X. Sillerman famous.

During the summer of 2012, the New York billionaire, who built his fortune throughout the 1990s by consolidating regional rock promoters into the company that eventually became Live Nation, announced his intention to drop an insane amount of money on the electronic dance music trend.

He started with Louisiana's Disco Productions. He just bought out Beatport for over $50 million. And as Crossfade reported in January, Sillerman and SFX were also preparing to a significant investment in Miami's Opium Group, which controls Mansion, SET, Mokai, and Cameo, as well as Opium at the Seminole Hard Rock Hotel and Casino.

But now a source close to the situation tells Crossfade: "The deal is off."

See also:

-Mogul Robert Sillerman Buys Into Opium Group, Looking at Other South Beach Clubs

-Beatport Sells Out: SFX Entertainment Buys Music Website for Undisclosed Sum

-Louis Puig: "It Is True, I Sold Club Space"

A few days ago, EDM website Dancing Astronaut published a blog post asserting that Opium Group "walked away" from the agreement with SFX.

But Crossfade's contact claims the failure to finalize the acquisition was caused by Sillerman and SFX Entertainment's analysis of the Opium Group's financial data.

According to our source: "SFX cancelled the deal because, as the company did its due diligence, the numbers Opium supplied didn't add up."

However, a rep for Opium Group denies that the financials were the cause of the deal's collapse, insisting that the nightlife conglomerate backed out on its own.

"The Opium Group was fully audited by SFX's auditors," Opium's rep insists, "and there were no discrepancies whatsoever, your source is 100% incorrect."

Whatever the case, though, contrary to earlier indications that the SFX-Opium agreement was inevitable, Miami's largest nightlife empire will remain locally owned and operated.

Follow Crossfade on Facebook and Twitter @Crossfade_SFL.

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S. Pajot