One of Austin’s cultural fixtures is closing a big chapter. Co-founder Nick Barbaro and 29 other longtime investors are selling their stakes in South by Southwest (SXSW) to a West Coast media conglomerate, making it the brand’s sole owner.
In 2021, Penske Media bought a 50 percent stake in SXSW, making it a majority stakeholder in the brand. With its 2026 purchase of the outstanding stake for an undisclosed amount, Penske Media takes over as the full owner.
Los Angeles-based Penske Media announced in a press release that the headquarters of SXSW will remain in Austin, and next year’s conference and festival will go on as planned. In four decades, the local gathering has evolved into a globally known event.
Who’s cashing out?
The Austin Chronicle, which Barbaro owns, reports he’s a shareholder of SXSW Holdings, whose 30 stakeholders were early investors in SXSW. The Chronicle says Barbaro and his fellow shareholders will sell their SXSW stakes to Penske Media and shut down the holding company.
Co-founder Ronald Swenson, who stepped down as president of SXSW in 2022, is a SXSW Holdings shareholder, according to The Chronicle.
Barbaro tells The Chronicle the sale to Penske Media will most likely end his active involvement in SXSW, although it’s been more than a decade since he held a “designated role.”
“It’s been a great joy and honor to help build this company from the ground up,” Barbaro said in a release.
“We could never have done this anywhere but Austin, and thanks to the hard work and dedication of so many talented people who’ve cared deeply about its purpose over the years, SXSW continues to impact the lives of countless artists and innovators around the world,” he adds.
What Penske Media brings to the table
While Penske Media may not be a familiar brand to many outside of publishing, it owns a portfolio of recognizable events and companies.
Events hosted by Penske Media include the Golden Globes, the Academy of Country Music Awards, the Billboard Music Awards, New Year’s Rockin’ Eve, and Latin Music Week. Other well-known brands in its portfolio are Billboard, Rolling Stone, Variety, The Hollywood Reporter, WWD and Sportico.
“SXSW combines exceptional leadership and a proven playbook with a live event experience that is second to none,” said Jay Penske, chairman and CEO of Penske Media, in the release.
“Premium live experiences are central to Penske Media’s future,” he added, “and we are thrilled to increase our stake in SXSW, and provide the company with further backing and together write the most expansive chapter in its history.”
The evolution of SXSW
Founded in 1987 by Barbaro, Swenson, Louis Black, and Louis Jay Meyers, SXSW held its first conference and festival that year. Organizers had expected 150 attendees, but the first day drew 700.
Black previously sold his stake in SXSW, according to The Chronicle, and Meyers died in 2016.
Today, the conference and festival attracts a who’s who of celebrities in music, film, TV, politics, tech, and business. Big names who’ve spoken or performed at SXSW include Dolly Parton, Barack and Michelle Obama, Steven Spielberg, Ben Affleck, Matt Damon, Kendrick Lamar, Lady Gaga, Cardi B, Lizzo, Metallica, Mark Zuckerberg, and Mark Cuban.
Last year’s SXSW conference and festival, along with the SXSW EDU companion event, drew almost 310,000 participants. The 2024 edition generated an estimated economic impact of $377.3 million.
The next SXSW is scheduled for March 15-21, 2027, with SXSW EDU taking place March 13-16. Event organizers previewed the 2027 event in August, announcing a new podcast festival, new logistics to respond to the temporary loss of the convention center and the Paramount Theatre, a new locals lounge, and more.
