Notorious American company SFX Entertainment has experienced some rough waters recently and after a distressing 2015, the new year began on a brighter note for the company who have just accepted $20 million in new funding. This funding is said to keep the company afloat for the immediate future.

Prior to the announcement, SFX Entertainment was facing harder times; the company was on the verge of declaring bankruptcy due to a miniscule stock price of eight cents per share, compared to their previous ten dollars plus back in 2013. The funding has raised SFX’s stock value by 57 percent, however it’s not near enough to repair the company’s mistakes.

In terms of the company’s corporate structure, SFX has decided to take on an organisational structure where more of their operations will take place at local and regional levels worldwide, rather than adopting a corporate arrangement.
What does this mean for sub-companies? With this new financing on board, it’s predicted that it’s enough to keep SFX afloat for the time being, however we will have to wait and see if this financing will be beneficial and kick-start the company again or if it was merely a short-term saviour. As for sub-companies, we will just have to wait and see what happens in 2016…