Live Nation has acquired a majority stake in Veeps, a ticketed livestreaming platform created by Good Charlotte cofounders Joel and Benji Madden.
The Beverly Hills-based concert promoter formally announced its investment in Veeps today. Though the financial terms of the deal weren’t disclosed, Live Nation noted in a message that “Veeps has helped artists make millions of dollars in revenue” since its 2017 founding. During 2020, the ticket-focused livestreaming platform hosted approximately 1,000 gigs, the most popular (and financially successful) of which came in the year’s latter half.
In addition to emphasizing ticket sales, the “commission-free” Veeps “facilitates enhanced engagement between artists and fans” and supports “broad social marketing and intimate VIP offerings,” per Live Nation.
Addressing the deal in a statement, Joel Madden said, in part: “Last year Veeps live streams helped artists — both big names and new acts — make over $10 million dollars [sic] for themselves, their families, their crew and their chosen causes[,] and we’re looking forward to helping even more artists connect with fans this year in ways that support their art and their development.”
Perhaps the most noteworthy part of the release concerns Veeps’ growth strategy in the coming months and years, as in-person concerts and music festivals return. Aside from continuing to deliver “its core experiences,” the four-year-old platform will tap “into Live Nation’s network to connect fans with exclusive content, new vantage points, sold out shows, and unparalleled access to events all around the world.”
Live Nation President and CEO Michael Rapino, in a statement of his own, acknowledged the long-term earning potential of streaming traditional concerts.
“Live streaming is a great complement to our core business, and essentially gives any show an unlimited capacity,” Rapino said in part. “Looking to the future live streams will continue to unlock access for fans – whether they are tuning into a sold out show in their hometown, or watching their favorite artist play in a city halfway around the world.”
On the day, Live Nation stock (LYV) experienced a nearly seven percent boost, with shares resting at $76.54 apiece when the market closed – almost touching their 52-week-high of $78 each. Though the uptick may have resulted in part from the Veeps buyout, it appears that the gain is chiefly attributable to CNBC commentator and Ritholtz Wealth CEO Josh Brown’s relaying that “there’s a lot of upside” associated with LYV.
Back in October, investors including Scooter Braun and Jared Leto dropped $1.5 million on a different ticketed livestreaming platform, Los Angeles-based Moment House. Braun also joined Alex Rodriguez and Twitch co-founder Alex Lin, among others, in participating in a $30 million funding round for virtual concert startup Wave.
And Mandolin, which enables musicians to livestream their shows from venues, raised $5 million in seed capital during the fall.