Live entertainment digital media company LiveXLive has acquired electronic music events and festivals firm React Presents.
LiveXLive is a live social music network that delivers livestreams, digital audio and on-demand music festivals and concerts, including Rock in Rio and EDC Las Vegas, as well as providing access to original content such as artist exclusives and industry interviews.
“This is a transformative moment in the evolution of LiveXLive,” LiveXLive chief executive and chairman Robert Eillin said in a statement. “We have quickly become a leading live streaming 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 $15m 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.”
The release indicates that LiveXLive acquired React Presents for $2m, funded with subordinated convertible note with a two-year term, eight-per-cent interest rate, and conversion price of $4.50 per share.
Eillin continued: “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.”
React Presents’ flagship EDM festival Spring Awakening last year featured DJ Snake, GRiZ, Illenium, Zedd and many others. The firm also produces festivals including Mamby On The Beach, which was cancelled last year.
Eillin added: “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.”