WPP makes strategic investment in SFX Entertainment

FTSE 100-listed advertising and marketing giant WPP has made a strategic investment in SFX Entertainment, the digital media company providing a platform for electronic dance music events.

FTSE 100-listed advertising and marketing giant WPP has made a strategic investment in SFX Entertainment, the digital media company providing a platform for electronic dance music events.

A statement issued by WPP said that the investment would enable WPP's operating companies to tap into the fast-growing international electronic dance music markets with a focus on sponsorship and branded entertainment opportunities.

"It continues WPP's strategy of developing digital media beyond traditional advertising, which has become increasingly important to clients trying to connect with 16-34 year-old 'digital natives," the group said.

New York-based SFX was founded by Chairman and Chief Executive Officer Robert Sillerman in 2011. The company has a collective audience of over 100m connected, mobile music fans through its various properties. These include Beatport, ID&T North America (Sensation and Mysteryland), Life In Color, Disco Donnie Presents and Miami Marketing Group.

Sir Martin Sorrell, WPP Chief Executive Officer, said: "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."

Sillerman said: "The investment from WPP is an exciting step for us as it underlines what we have believed from the start. There is a huge, global, fragmented audience of 16-34 year-old dance music consumers that is very difficult to reach. In developing our global platform, we will be able to offer brands the opportunity to connect directly through events, festivals, online and mobile media."

Dance music has become a $4.0bn a year global phenomenon and DJ events have become one of the fastest growing segments in live entertainment with 45% year-on-year growth since 2007, according to WPP.

WPP's share price was down 0.74% to 1,075p at 09:53 on Monday morning.

MF

Recommended

The MoneyWeek Podcast: picking stocks is fun, but you need to do your homework
Investment strategy

The MoneyWeek Podcast: picking stocks is fun, but you need to do your homework

John Stepek talks to Steve Clapham, investor, analyst and author of The Smart Money Method, about the dangers in picking individual stocks and why you…
8 Apr 2021
BP looks set to return more money to shareholders as it beats expectations
Energy stocks

BP looks set to return more money to shareholders as it beats expectations

Oil major BP is to embark on a share buyback programme after significantly reducing its debts. Saloni Sardana looks at what it means for your portfoli…
6 Apr 2021
Deliveroo has hit the market – but it’s not getting the warmest welcome
UK stockmarkets

Deliveroo has hit the market – but it’s not getting the warmest welcome

Food delivery company Deliveroo made its debut on the stockmarket this morning. But with the share price sliding by 30% straight away, it’s not made t…
31 Mar 2021
Three stocks to buy now that will come back stronger after Covid-19
Share tips

Three stocks to buy now that will come back stronger after Covid-19

Professional investor Ed Wielechowski of Odyssean Capital, chooses three compelling stocks that should thrive in a post-pandemic world.
29 Mar 2021

Most Popular

The bitcoin bubble will burst: here’s how to play it
Bitcoin

The bitcoin bubble will burst: here’s how to play it

The cryptocurrency’s price has soared far beyond its fundamentals, says Matthew Partridge. Here, he looks at how to short bitcoin.
12 Apr 2021
What does the Coinbase listing mean for bitcoin and other cryptocurrencies?
Bitcoin

What does the Coinbase listing mean for bitcoin and other cryptocurrencies?

As the bitcoin price hit new highs, the world's biggest cryptocurrency exchange, Coinbase, listed on the stockmarket. John Stepek looks at what that m…
15 Apr 2021
Properties for sale for around £400,000
Houses for sale

Properties for sale for around £400,000

From a converted church in Banffshire with views towards the Cairngorms National Park, to a period property in the Georgian market town of Beverley, e…
2 Apr 2021