The online retailer says it’s unable to make payments while its parent company, SFX, completes a ‘going private’ process.
Beatport has frozen payments to labels while its parent company, SFX, continues a ‘going private’ process from a publicly listed company to a private one.
The online retailer says the process, which is set to take place during 2015’s fourth quarter, has “trapped certain earned label payments” for the past quarter, from April through June. SFX, which owns Beatport, is in the process of a lengthy restructuring that includes its chairman and CEO Robert Sillerman buying the company to take it private.
The email reads:
Since inception over 10 years ago Beatport has paid almost $200,000,000 to its label partners. Beatport’s parent company, SFX, is currently involved in a ‘going private’ process that has trapped certain earned label payments. This process will be coming to an end in the next few weeks, at which time all payments will be able to be made. Beatport prides itself on being the broadest and original friend of the makers of electronic music and will clear this one time obstacle very shortly. In the meantime, feel free to contact your label manager with any questions. Thank you for your patience and continued support.
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