LiveXLive Media, Inc., a global platform for livestream and on-demand audio, video, and podcast content in music, comedy, and pop culture, and owner of PodcastOne announced that it has signed a binding Letter of Intent to acquire 100% of the membership interests of Custom Personalization Solutions, LLC (“CPS”) in an all-stock deal.
The transaction is valued up to $6 million, subject to a working capital adjustment. The proposed acquisition is expected to close by December 31, 2020, subject to customary and other closing conditions.
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.
With the planned acquisition, LiveXLive will partner with the music and entertainment industry, as well as stars 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. Digital and physical distribution of merchandise is mainly online, but will also include numerous big-box retailers, like Walmart, which further opens up promotional and marketing opportunities for LiveXLive and its partners.
“The global licensed merchandise market is expected to reach $400 billion by 2023. This acquisition presents an immense opportunity for LiveXLive to leverage its audience, platform, and artist and entertainment industry relationships to add commerce and specialized consumer product revenues to our music stack and help drive the transaction components of our flywheel business model,” said Robert Ellin, CEO, and Chairman of LiveXLive. “By integrating social commerce into our live and original content, we intend to fulfill superfans dreams with personalized merchandise from their favorite artists and shows, directly to the consumer.”
“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, CEO of CPS.
LiveXLive’s operating performance and consumer reach are showing impressive growth across virtually all meaningful performance metrics. The company continues to drive compelling original content, including pay-per-view (“PPV”) events, new artist-driven format, and tentpoles, like LiveXLive’s recently announced The Lockdown Awards, across both LiveXLive and PodcastOne. The opportunity is expanding to monetize the company’s content multiple times and in multiple ways across numerous platforms, including carriers, automobiles, and OTT.
LiveXLive has the first talent-centric platform focused on superfans and building long-term franchises in audio music, podcasting, OTT linear channels, PPV, and livestreaming. Its model includes multiple monetization paths including subscription, advertising, sponsorship, merchandise sales, licensing and ticketing. The company’s wholly-owned subsidiary, PodcastOne, generates more than 2 billion downloads annually across more than 300 podcasts. LiveXLive recently raised revenue guidance for its 2021 fiscal year based on strength in its core businesses.