SNAP Interactive is being acquired by live music business LiveXLiveMedia in a $34m merger.
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Under the terms of the agreement, announced today, LiveXLive will acquire SNAP through a merger, and after the deal is completed, LXL Video will continue as the surviving corporation.
According to a joint press release, the purchase price for the acquisition is approximately $34m, consisting of around $20.4m in cash and approximately $13.6m in shares of LiveXLive common stock.
LiveXLive Media is a Beverly Hills-based premium livestreaming network that focuses on live music and music-related video content.
The company said it wanted to acquire the dating company to use SNAP’s technology to give its users an improved experience by integrating group video chat and other social and relationship-building features into the platform.
The company will however continue to operate’s SNAP’s portfolio of apps, which includes FirstMet, Paltalk and Camfrog, and will use its own influencer network LiveXLive Influencers to help grow the SNAP products.
LiveXLive’s CEO and Chairman of the Board Robert Ellin said: “We are building a unique, highly differentiated destination for music fans globally and are excited to add SNAP’s robust live video expertise and technology, intellectual property and user base to the LiveXLive family.
“LiveXLive is committed to becoming a live social music network with experiential tools and features from SNAP to power our video content and live streams for music lovers.”
Prior to its merger with Paltalk, SNAP was in a stretch of decline, seeing revenues decrease to $2.6m in Q2 2016 – an 18% decrease compared to 2015.
After completing the merger with Paltalk in October 2016, SNAP then saw subscription revenues increase by 48.3% to $6.2m in Q2 of 2017.
As of 30th June 2017, SNAP Interactive had 179,000 subscribers across its portfolio.
Speaking about the deal, SNAP’s Chairman of the Board Jason Katz said: “SNAP is pleased to be joining one of the newest and most disruptive names in music and live video entertainment.
“Our 18 years of pioneering technology in live video social networking applications is a perfect fit to power LiveXLive’s vision. We look forward to being an integral part of an exciting LiveXLive ecosystem.”
The closing of the proposed transaction is also subject to certain conditions, including the completion by LiveXLive of an underwritten public offering generating aggregate gross proceeds of at least $100m, as well as the filing of a Registration Statement on Form S-4 with the SEC.
Read more about the merger agreement here.