The $34m merger between SNAP Interactive and live music business LiveXLive has been terminated.
In a press release sent out today, SNAP Interactive announced the termination, saying it was “due to certain conditions of the agreement that were not fulfilled as of October 27, 2017”.
The condition that was not met was the completion of a public offering by LiveXLive, which was announced on 9th October but was not completed in time.
When the deal was announced, SNAP said the merger was subject to 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.
By not fulfilling these requirements, SNAP is no longer under the obligations outlined in the agreement.
In addition to this, no termination fee is payable by SNAP in connection with the termination of the merger agreement.
In a statement, CEO Alex Harrington said: “Though we recognized the potential benefits of a transaction with LiveXLive, we believe SNAP has substantial value creation potential as a stand-alone business.
“The acquisition interest from LiveXLive was a great validation of the potential of the SNAP enterprise, particularly recognizing the underlying value of our live video technology and new product initiatives.
“We continue to entertain strategic alternatives that may accelerate realization of value for shareholders while also delivering a strong pipeline of upcoming product enhancements and launches, that will further our standing as an innovator in live video social networking applications.”
It’s a disappointing outcome for SNAP, who looked set to complete an exit after finalising its merger with Paltalk last year.
Read more about it here.