Live-streaming concert and original content platform LiveXLive has acquired React Presents, an organizer and promoter EDM concerts.
The deal came at a price $2 million, according to the companies. The sum was funded with a convertible subordinate note, a type debt security that can be leveraged against stock. It was also revealed that the buyout’s terms will cover two years at eight percent interest, with a per-share rate about $4.50.
React Presents promotes electronic music concerts, clubs, and festivals, including the Spring Awakening Festival, which is held annually in Chicago. The most recent Spring Awakening concert series took place in June, and information about 2020’s event is expected to be made available soon.
Along with news the React Presents purchase, LiveXLive released its Q3 fiscal year earnings. The West Hollywood-headquartered company’s revenue topped $9.7 million between October and December 2019, up from $8.6 million during the same period in 2018. This income comes out to a loss about 15 cents per share, which is less than some investors anticipated.
LiveXLive’s stock, traded under the Nasdaq symbol LIVX, fell by about 30 percent on the heels the earnings report, to less than $1.30 per share. Even so, the company’s executives are confident that they can be successful moving forward, partially because the new concert options and festivals included with React Presents.
In a similar vein, LiveXLive bought Slacker Radio for $50 million in 2017.
Besides providing digital access to live concerts, LiveXLive fers music streaming and media relating to artists. For instance, the company recently released a “Green Day DNA” episode to promote the California punk trio’s newest album, Father All… The half-podcast, half-playlist program describes some the many musical influences on Green Day’s career before playing these tracks for listeners.