Live-streaming concert and original content platform LiveXLive has acquired React Presents, an organizer and promoter of EDM concerts.
The deal came at a price of $2 million, according to the companies. The sum was funded with a convertible subordinate note, a type of 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 of 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 of 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 of 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 of 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 of 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 offers 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 of All… The half-podcast, half-playlist program describes some of the many musical influences on Green Day’s career before playing these tracks for listeners.