SFX Entertainment acquires 50% of Rock in Rio SFX Entertainment has completed its previously announced acquisition of a 50-percent interest in a holding company that controls Rock in Rio, one of the biggest festival franchises in the world. SFX paid R$150.0M, or approximately $ 62.3M, as of the closing date.
SFX Entertainment cuts FY15 revenue to $500M from excess of $500M FY15 revenue consensus of $493.7M. Cuts FY15 pro forma adjusted EBITDA to $55M-$65M from $60M-$70M. The adjustment to the revenue guidance is inclusive of the anticipated impact of foreign exchange as a significant portion of the Company’s operations occur internationally. The adjustment to the pro forma adjusted EBITDA expectation reflects the Company’s share of the expected losses related to the start-up costs for Rock in Rio Las Vegas, which is expected to be approximately $4M-$5M.