Look out public radio tote bags, here comes PodcastOne. The company’s parent LiveXLive Media has struck a $6 million all-stock deal to buy Custom Personalization Solutions. The Addison, IL-based CPS is the creator of personalized merchandise meaning podcasters like Adam Carolla and The Lady Gang may soon be offering up their own line of personalized clothing, jewelry, and toys as well as virtual goods.
Robert Ellin, CEO and Chairman of LiveXLive, said the deal was attractive since 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," said Ellin. "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."
With the planned acquisition, Los Angeles-based LiveXLive said it plans to partner with the music and entertainment industry, as well as stars who have massive social media and marketing reach, to create and distribute unique and limited-edition personalized merchandise. And while digital and physical distribution of merchandise is mainly online, LiveXLive said it will also include numerous big-box retailers, like Walmart to further open promotional and marketing opportunities.
"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," said Scott Norman, CEO of CPS in the announcement.
Founded in 2012 CPS is a group of fast-growing web-oriented businesses with more than 70 full-time employees. It had about $19 million in revenue last year.
The transaction is expected to close by year-end.