Outsiders include Ron Burkle, the supermarket mogul who made an unsuccessful bid last year for the Warner Music Group, and media mogul Robert FX Sillerman, according to people involved in investment talks who refused to be identified to discuss private agreements.
Mr. Sillerman – who transformed the concert industry in the 1990s by consolidating regional rock promoters into what is now Live Nation – declined to comment for this article, as did a representative for Mr. Burkle.
For new investors, entering the world of dance might not always be a party. It is difficult to determine the value of promotional companies and there are special risks whenever we organize a musical bacchanal for tens of thousands of people.
At the Electric Daisy Carnival in Los Angeles two years ago, a 15-year-old girl died of a drug overdose; at the same event in Dallas the following year, a 19-year-old man died and more than two dozen were hospitalized with drug, alcohol and heat-related illnesses.
Pasquale Rotella, the CEO of Insomniac, the company behind the raves, was also involved in a corruption scandal in Los Angeles. Last month, he and five others were charged with charges relating to the embezzlement of $ 2.5 million from the Los Angeles Memorial Coliseum. In a statement, his company said the charges against him were “completely unfounded and downright wrong, both in law and in fact.”
The investment talks may only be in the exploratory phase. But for a musical genre that not too long ago was primarily associated with secret places and drugs, this is a surprising development, as are the amounts of money involved. According to those involved in the talks, bids from the biggest developers have hovered between around $ 20 million and $ 60 million.
“It feels like the era of dot-coms,” said Joel Zimmerman, a William Morris Endeavor agent who books many of the best dance numbers. “There’s a little gold rush going on, with strangers watching.”