LiveXLive Completes Acquisition Of Custom Personalization Solutions (CPS)
LiveXLive Media, a global platform for livestream and on-demand audio, video and podcast content in music, comedy and pop culture, and owner of PodcastOne, Slacker Radio and React Presents, announced that it has completed the acquisition of Custom Personalization Solutions, LLC (“CPS”) in an all-stock deal. The transaction is valued at approximately $12 million based on the closing market price of LiveXLive’s stock on December 22, 2020, subject to working capital and other adjustments.
CPS will operate as a wholly owned subsidiary of LiveXLive. The acquisition is expected to be immediately accretive to shareholder’s equity and additive to earnings and includes approximately $5.2 million of estimated working capital. The deal further diversifies LiveXLive’s business model into the global licensed merch market, which is expected to reach $400 billion by 2023.
Marketing Technology News: Goodway Group Named To AdExchanger’s Inaugural Programmatic Power Players List
“The CPS acquisition is an ideal complement to our flywheel business model and presents a significant opportunity to leverage our audience, platform and artist and entertainment industry relationships to add commerce and specialized consumer product revenues,” said Robert Ellin, CEO and Chairman of LiveXLive. “By integrating specialty merchandise with our music, podcast and original content stack, we can offer superfans unique and personalized merchandise from their favorite artists, shows and events.”
As a result of the acquisition of CPS, LiveXLive intends to further the revenue reach of its current partners and talent lineup across all of its subsidiaries to target super fans and partner with other artists and stars from the music, podcast and entertainment industry who have massive social media and marketing reach, to create and distribute unique and limited-edition personalized clothing, jewelry, toys as well as virtual goods. In addition, LiveXLive will work with artists and celebrities to manufacture custom products and licensing partnerships similar to Teremana Tequila and Dwayne Johnson (aka The Rock). Digital and physical distribution of merchandise will be mainly online, but is also expected to include numerous big-box retailers like Walmart, which further opens up promotional and marketing opportunities for LiveXLive and its partners.
Marketing Technology News: Blubrry Adds JioSaavn and Gaana as New Podcast Distribution Platform
“The worlds of custom merchandise, real-time fulfillment and social commerce driven by celebrity and influencers have collided to create a perfect storm. LiveXLive represents the perfect partner for us to take advantage of this next wave,” said Scott Norman, Founder of CPS.
Founded in 2012 and headquartered in Addison, IL, CPS is a group of fast-growing web-oriented businesses specializing in the merchandise personalization industry. Owned and managed by top-notch partners with a combined 50 years of personalization experience, CPS has brought together its “Dream Team” of innovators and designers to create an assortment of personalized merchandise unlike anything in the market. CPS currently has 70 plus full-time employees. Current CPS CEO, John Semmelhack, will remain CEO of CPS as a wholly owned subsidiary of LiveXLive.
LiveXLive has the first talent-centric platform focused on superfans and building long-term franchises in on-demand audio and video, podcasting, vodcasting, OTT linear channels, pay-per-view (“PPV”), and livestreaming. Its model includes multiple monetization paths including subscription, advertising, sponsorship, merchandise sales, licensing, and ticketing. LiveXLive recently raised revenue guidance for its 2021 fiscal year based on strength in its core businesses.
Marketing Technology News: LiveXLive to Review Strategic Opportunities to Grow the Company’s Business
The post LiveXLive Completes Acquisition Of Custom Personalization Solutions (CPS) appeared first on MarTech Series.
The post LiveXLive Completes Acquisition Of Custom Personalization Solutions (CPS) first appeared on PressRelease.cc.