LiveXLive Media, Inc. (LIVX) has entered into a binding Letter of Intent (LOI) to acquire Gramophone Media, Inc. Financial terms of the transaction were not disclosed.
The shares of the global platform for live music, internet radio, and music-related streaming and video content have jumped 70.3% in the past year.
The deal is expected to pay off immediately for profit and will compliment all of LiveXLive’s activities.
Through the acquisition, artists will now have access to an end-to-end solution to develop and amplify their brand to audiences on LiveXLive’s social media apps and platforms. In addition, the company’s online digital talent search platform, Self made, will also benefit from the agreement. (See LiveXLive Media Stock Analysis on TipRanks)
Gramophone Media, Inc., based in New York City, is an artist and brand development agency specializing in music advertising with more than 400 artists and platforms.
The acquisition is expected to close by the end of June this year, subject to certain regulatory approvals.
Once the agreement is concluded, Gramophone Media will operate as a 100% subsidiary of LiveXLive. Gramophone Media’s management team, comprising President, Founder and Sole Shareholder, Eshy Gazit, will remain with Gramophone Media.
In addition, on May 26, LiveXLive raised its revenue forecast for FY2022 based on the strength of its core business.
Revenue is now expected to be in the range of $ 107 million to $ 115 million, while adjusted operating income from its core businesses is expected to be in the range of $ 5 million to $ 10 million.
LIVX CEO Robert Ellin said: “Gramophone Media is another exceptional addition to the complementary activities of LiveXLive. As a platform dedicated to artists, LiveXLive continues to aggregate synergistic businesses as well as experienced professionals who are positioned to help and collaborate with artists to attract superfans, create long-term franchises in audio music, the podcasting / vodcasting, linear OTT channels, NFTs, merchandise, PPV and live broadcast. “
Following the revised guidelines, DA Davidson analyst Tom Forte reiterated a buy note and increased the price target from $ 6.50 to $ 8 (upside potential 61.9%) on the stock.
Overall, the stock has a moderate buy consensus rating based on 2 unanimous buys. The average analyst $ 7.50 target price implies an upside potential of 51.8% over current levels.
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