
AUSTIN (Talk1370.com) -- The parent company behind Austin's annual South by Southwest festival has sold an ownership stake to the company behind Rolling Stone, Billboard, and a number of other publications and digital platforms.
According to media reports, P-MRC Holdings will take a 50% ownership stake in the business.
SXSW CEO and co-founder Roland Swenson called the deal a "lifeline", after officials had to cancel the 2020 festival due to the coronavirus pandemic and went virtual-only this year.
"It has been an incredibly tough period for small businesses, SXSW included," Swenson said in a statement. "When Jay Penske approached us with an interest in becoming a partner, it was a true lifeline for us."
Officials previously announced their hopes for an in-person event in 2022, announcing the festival is scheduled to take place from March 11-20 next year.
Economists have estimated the economic impact of SXSW to have contributed approximately $356 million in financial benefits to the Austin metro area in 2019.
"We are grateful and proud to become enduring partners with SXSW, and collaborate with its exceptional team," Penske said. "Since 1987, SXSW has been the world’s premier festival centered at the convergence of tech, media, film, and music. Today SXSW continues to be one of the most recognized brands for empowering creative talent and bringing together the brightest creators of our time. As part of this significant investment, we plan to build upon SXSW’s incredible foundation while extending the platform further digitally and assisting Roland and his incredible team to bring their vision to even greater heights."
Penske publishes more than 20 digital and print brands, including Rolling Stone, Variety, Deadline, BGR, and others.
SXSW's founders are expected to continue to manage and operate the event.