[9] Annual music festivals had been gaining momentum for some time, and the United States had launched Lollapalooza in Chicago, Illinois in 1991.

Michalik's death temporarily placed the future of the BDO festival in jeopardy, but the event continued after the Sydney Coroner's Court criticised the crowd control measures at the site and inflammatory comments made by Limp Bizkit's Fred Durst after the crush occurred.

[14][15] In November 2011, the business partnership between Lees and West was dissolved, and the latter next partnered with Austin, United States (US)-based company C3 Presents, which runs the Lollapalooza festival in the US.

C3 purchased a 51 per cent stake in the company following a split that was caused by "internal and external" pressures, whereby Lees severed all connections with the business.

Headline act Kanye West did not appear at the Perth and Adelaide events, while a media report at the time alleged that "staging and fencing contractors had not been paid, sponsors were angry and the festival was beset by internal rifts, namely the firing and then apparent re-hiring of CEO Adam Zammit.

Although a study revealed that large-scale music festivals contribute approximately A$5.2 million to the state's economy, in addition to increased tourism and employment levels, Claremont councilor Peter Browne supported Barker's position by stating that the benefits of events such as the Big Day Out are "hopelessly outweighed by the intolerable noise, the late finish, the high level of criminal activity and general social misbehaviour in and outside of the grounds."

[22] West announced to the media on 17 September 2013 that Arash "AJ" Maddah, a fellow Australian music festival promoter, had joined the Big Day Out enterprise.

As of the date of the announcement, Adam Zammit was the CEO of the company and Fairfax Media reported numerous job cuts.

During the same time period, Lees publicly revealed that West had sold his stake in the company and the festival was facing serious problems.

In an official statement, West explained, "Perhaps we were a bit ambitious expanding to two dates in Sydney for this year's Big Day Out.

Approximately 15,000 tickets were sold for the Perth leg of the festival,[27] leading to an announcement that the Big Day Out would not return to the western capital city.

"[19][33] Lees also spoke with triple j on 26 June and, in addition to stating "It's a very dysfunctional arrangement with AJ [Maddah] being in the driver's seat", expressed an ongoing belief in the high status of the BDO festival:

[34]After the New York Times announced "advanced talks" between Live Nation and C3 Presents in early October 2014,[35] the purchase of a 51-per cent stake in the Austin company was confirmed on 22 December of the same year.

Described at the time of the acquisition as "the largest independent concerts company in its space", C3 reported revenue to the value of US$124 million in 2013 and was targeted by Live Nation for its festival portfolio.

Since its inception in 1992, Big Day Out has attracted a large range of artists, with headlining acts including Nirvana, Pearl Jam, Kanye West, The Smashing Pumpkins, The White Stripes, Chemical Brothers, Blink 182, The Strokes, Muse, Hole, Violent Femmes, Iggy Pop and the Stooges, The Ramones, Soundgarden, Rammstein, System of a Down, Limp Bizkit, Nine Inch Nails, Rage Against the Machine, The Prodigy, Marilyn Manson, Foo Fighters, Metallica, Tool, The Offspring, Neil Young and Red Hot Chili Peppers.

The annual festival has also been a launching platform for many Australian artists, with various acts performing on the tour multiple times, such as Silverchair, Regurgitator, Powderfinger, You Am I, The Living End, Jebediah,[37][38] The Vines, Grinspoon, Nick Cave and the Bad Seeds, Kisschasy, and Wolfmother.

Australian DJ and producer Groove Terminator said of his first Boiler Room experience "In Adelaide, we played a lot harder and faster than anywhere else".

Other performers in the Boiler Room over the years included Simian Mobile Disco, Dizzee Rascal, The Chemical Brothers, Basement Jaxx, Goldie,[40] and The Presets (2006).

"[40] During the 2001 Big Day Out festival in Sydney, Jessica Michalik was crushed in a mosh pit during a performance by the band Limp Bizkit.

[43] Senior deputy state coroner Jacqueline Milledge issued a statement saying responsibility was on the Big Day Out's promoters Creative Entertainment Australia, saying there was overwhelming evidence that crowd density was dangerous when Limp Bizkit went on stage.

Limp Bizkit was also criticised in the report, Milledge saying that Durst could have taken the situation more seriously, with his comments on stage during the attempt to rescue Michalik "alarming and inflammatory".

[45] In 2005, United National Insurance sued Limp Bizkit in an attempt to avoid paying legal fees arising from Michalik's death.

[45] On 21 January 2007, a decision was made by the organisers to discourage Big Day Out patrons in Sydney from bringing and displaying the Australian flag.

The organisers said the decision was a result of recent ethnic tensions in Sydney and complaints that the previous year's festival had been marred by roving packs of aggressive flag-draped youths.

Prime Minister John Howard, New South Wales Premier Morris Iemma, and Federal Leader of the Opposition Kevin Rudd all condemned the move.

Main stage act Jet performed in front of a large backdrop of a black-and-white Australian flag cut-out of their name, with lead vocalist Nic Cester adding, "I can't tell anyone else what to do but we as a band are very proud to be Australian and we don't want to feel we are not allowed to feel proud".

[55] In November 2009, gay rights groups in New Zealand protested after controversial rapper Beenie Man was included in the second round of announcements for the 2010 tour.

[56] On 15 November 2009, the festival's Australian organisers issued a statement on their website confirming that Beenie Man had indeed been dropped from the lineup.

Whilst they acknowledged his commitment to the 2007 Reggae Compassionate Act and his promises to not perform the offending songs on his tour, they ultimately made the decision to drop Beenie Man because they felt his appearance would "be divisive amongst our audience members and would mar the enjoyment of the event for many.

"[57] In early November in 2011, ahead of the 2012 Big Day Out, a request was made by Auckland City Council to remove Odd Future from line up due to some of their lyrics being allegedly homophobic.