Livestream platform LiveXLive Media is expanding into the merch business.
The company is acquiring 100% of Addison, IL-based Custom Personalization Solutions, described in a press statement as “a group of web-oriented businesses specializing in merchandise personalization”.
The proposed transaction is valued up to $6 million and is expected to close by December 31, 2020, subject to customary and other closing conditions.
CPS currently has 70 plus full-time employees and recorded approximately $19m in revenue in 2019, according to LiveXLive.
With the planned acquisition, LiveXLive states that its will partner with the music and entertainment industry, as well as stars who have “massive social media and marketing reach”, to create and distribute limited edition personalized clothing, jewellery, toys as well as virtual goods.
Digital and physical distribution of merchandise will mainly take place online, but will also include numerous big-box retailers, like Walmart, according to LiveXLive.
“By integrating social commerce into our live and original content, we intend to fulfill superfans dreams with personalized merchandise from their favorite artists and shows, directly to the consumer.”
Robert Ellin, LiveXLive
Robert Ellin, CEO and Chairman of LiveXLive, said: “The global licensed merchandise market is expected to reach $400 billion by 2023.
“This acquisition presents an immense opportunity for LiveXLive to leverage its audience, platform and artist and entertainment industry relationships to add commerce and specialized consumer product revenues to our music stack and help drive the transaction components of our flywheel business model.
“By integrating social commerce into our live and original content, we intend to fulfill superfans dreams with personalized merchandise from their favorite artists and shows, directly to the consumer.”
“The worlds of custom merchandise, real time fulfillment and social commerce driven by celebrity and influencers have collided to create a perfect storm.”
Scott Norman, CPS
Scott Norman, CEO of CPS, added: “The worlds of custom merchandise, real time fulfillment and social commerce driven by celebrity and influencers have collided to create a perfect storm.
“LiveXLive represents the perfect partner for us to take advantage of this next wave.”Music Business Worldwide
