LiveXLive a global digital media company focused on live entertainment, has announced that it has acquired Chicago-based React Presents for $2 million funded with a subordinated convertible note with a two-year term, an 8% interest rate, and a conversion price of $4.50 per share. React Presents is a leading producer and promoter of over 250+ electronic dance music events, festivals, clubs, concerts and venues, including Spring Awakening Music Festival.
Robert Ellin, CEO and Chairman of LiveXLive states:
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.
The acquisition will make LiveXLive one of the leading promoters of EDM festivals, concerts and events in the Midwest, including marquee EDM music festivals such as Spring Awakening, and Sunset Music Festival, as well as more than 250 club and venue shows per year.
Source: Yahoo Finance