Private equity firms circle for ‘significant’ Dice stake

At least three private equity firms are among parties that are interested in acquiring a significant stake in London-headquartered ticketing and discovery platform Dice, according to Bloomberg.

The report, which said that such a deal would value the business at “hundreds of millions of dollars”, comes just weeks after independent auditors warned that there was “material uncertainty” about Dice’s ability to continue as a going concern without additional funding.

Bloomberg, citing unnamed people directly involved in the process, said that Dice was approached in recent months by a prospective buyer, prompting the company to initiate a more formal process.

The report added that one of Dice’s largest investors, Softbank, was keen to sell its stake.

Dice belatedly published its annual accounts for 2022 last month, showing a loss for the financial year of $50.3m (£42m/€59m) following a loss of $29.4m in 2021. Although revenue climbed from $6.2m to $28.5m year on year, administration expenses more than doubled to $62m in 2022.

In the financial update, auditors PricewaterhouseCoopers stated: “In both the base case and severe but plausible downside forecasts the group and company require additional funding which has not yet been finalised. These conditions… indicate the existence of a material uncertainty which may cast significant doubt about the group’s and the company’s ability to continue as a going concern.”

Last year, Dice confirmed a number of layoffs as it looked to restructure areas of its business.

Dice added in its latest financial report that “the directors have determined… that there is reasonable expectation that the group and company has adequate resources to continue in operational existence and to meet its liabilities… [for] at least 12 months”.

Dice continued: “The group and company has a demonstrable track record of fundraising and are already in advanced conversations with a number of parties over further funding.”

Last year, Dice completed a $65m funding round led by Music, an investment company focused exclusively on the music sector founded by Matt Pincus, the executive behind Songs Music Publishing.

It also secured $122m in a Series C funding round in September 2021.

Updated at 16:00 BST on July 16 to include additional comment from Dice: “Dice has built a leading, global platform and our 2022 loss was planned and in line with a company our size that is scaling fast. These investments have put Dice in a strong position in 2024 and beyond, to make Dice the best live music network and discovery platform.

 “Next year Dice will have three years of accounts audited by a top four firm, PwC. This gives the business further financial rigour as we continue to grow.

 “Like all businesses, we must always disclose possible downside scenarios. However, we are in a strong position for long term continued growth, as we reshape our business to move beyond ticketing, investing in new fan and partner products.”