The party has ended badly for Robert F. Sillerman, the one-time EDM power-player whose latest venture Function(x) Inc was delisted from the NASDAQ stock exchange last week for reportedly failing to file an up-to-date quarterly financial report.
Function(x), which specialises in “viral” online content, announced it would begin trading over-the-counter when it was delisted and trading in its stock suspended for tardiness in filing the requisite form 10-Q.
The company was also struggling with a bid price deficiency on the exchange, notes Hypebot, while IQ now reports the accountancy firm BDO USA, former auditor for Function(x), has resigned amid allegations of “insufficiently authorised cash disbursements” to the exec from company bank accounts.
It’s another messy situation for Sillerman who presided over the most spectacular implosion in electronic dance music. The serial entrepreneur and music mogul built the SFX Entertainment empire into a conglomerate the likes of which had never been seen in what was, until recently, an underground, niche genre.
The American businessman, who once appeared on the 2005 Forbes 400 list with a net worth of nearly US$1 billion, established a live entertainment colossus which went public in October 2013 with a market value of more than $1 billion.
SFX operated a global portfolio of festivals, from Tomorrowland to Rock in Rio, Electric Zoo and Australia’s touring beast, Stereosonic. It was one heck of a build-up, and the drop was wicked.