People familiar with the matter said that magazine publishers like Rolling Stone, Billboard and Variety Magazine, Penske Media Corp. agreed to acquire Southwest’s 50% stake in the famous technology, music and film festivals.
Texas holiday is one of the largest and most famous holiday in the United States. Due to the outbreak of the coronavirus pandemic, it was cancelled by the Austin city government at the last minute and suffered a heavy economic blow in March last year.
Organizers at the time said that their insurance policies did not cover insurance cancelled due to the pandemic. They believe that canceling the performance will cost them millions of dollars, which has raised questions about the future of the festival, which is also known as SXSW or “Southby”
This year, the organizers only held a short virtual event, but said they plan to re-host the event in 2022.
People familiar with the matter said Penske will make a strategic investment in the tightly controlled company SXSW LLC in exchange for a 50% stake in the company. People familiar with the matter said the event was owned by the founder of the music festival in 1987. They will continue to manage and operate the festival, although Penske will have the largest stake.