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After two years of no in-person events, Austin festival South by Southwest has agreed to give 50% of ownership to P-MRC, a Los Angeles company that controls publishing operations for Rolling Stone and Billboard.

The media venture was founded in 2020 and is part-owned by Jay Penske, racer Roger Penske's son and head of Penske Racing and Penske Media.

The move comes after the COVID-19 pandemic left the festival with two years worth of hemorrhaging funds. SXSW organizers were left scrambling for solutions in March 2020 when the city of Austin canceled the festival at the onset of the pandemic. One-third of the festival's 175 year-round employees were laid off, and the festival ran a shortened virtual event in 2021.

SXSW CEO and co-founder Roland Swenson said in a statement that the company is grateful to get aid when they need it most and that they are now looking to the future.

"It has been an incredibly tough period for small businesses, SXSW included," Swenson said. "When Jay Penske approached us with an interest in becoming a partner, it was a true lifeline for us. Both of our companies share a passion for producing high-quality content that helps shape modern culture, so this feels like a natural alliance."

Both of Austin's big-name festivals are now in the hands of out-of-town buyers. In 2014, homegrown festival Austin City Limits was bought in part by LiveNation, who took 51% ownership in Austin live promoter C3 Presents.

While SXSW was still online-only this year, it was aided in part by big-name guests such as Matthew McConaughey, Willie Nelson, Chance the Rapper and Bill Hader.

The fest has captured the essence of Austin arts and culture for 34 years, and it doesn't plan on stopping now. With P-MRC by its side, SXSW said it plans on keeping its unique identity but expanding operations as it prepares for an in-person celebration next spring.

"Since 1987, SXSW has been the world's premier festival centered at the convergence of tech, media, film, and music," Penske said. "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."

With their future restored, SXSW's newest slogan rings truer than ever: "See you next year at SXSW!"


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