(CelebrityAccess) — LiveXLive Media, which is best known for livestreaming concerts and music festivals, on Friday announced it has expanded its business focus with the acquisition of EDM concert and festival promoter React Presents.
React Presents promotes more than 250 live music events a year, including its flagship Spring Awakening Festival and over the last decades, has developed a reputation as one of the most recognized EDM promoters in the Midwest.
In 2019, React Presents generated approximately $15.0 million in revenue through ticket sales, sponsorship, merchandising, and other ancillary revenue.
“This is a transformative moment in the evolution of LiveXLive. We have quickly become a leading livestreaming and original music content platform with a large global audience and more than 820,000 paid subscribers. By acquiring this key asset in the EDM space, we added $15 million in revenues, expanded our audience reach with the addition of more than 250 programs and events, and continued to fill in our flywheel with event ownership and management. We have now increased the number of years that we own events and the hours of live content we’re distributing. Most importantly, we are partnering directly with artists to turn superfans into subscribers, effectively providing brand new revenue streams for managers, bands, and labels by converting ticket sales into subscriptions,” said Robert Ellin, CEO and Chairman of LiveXLive.
“LiveXLive is creating a new music stack combining audio, video, social and live events into one end-to-end experience. This acquisition will create powerful cross-marketing opportunities based on direct access to a new pool of active music fans. Leveraging the built-in synergy of event and festival ownership, we anticipate significant growth in audience, subscribers, and original content offerings through expanded audience reach and tighter artist relationships,” added Ellin.
According to LiveXLive, it acquired React Presents for $2 million, funded with a convertible note with a two-year term, 8% interest rate, and conversion price of $4.50 per share.