Australian music technology company Vinyl Group has announced its acquisition of London-based Web3 start-up Serenade, a strategic move aimed at enhancing its presence in the burgeoning digital collectables market. The acquisition grants Vinyl Group complete control over Serenade's assets, including 100% of its UK subsidiary.
The deal involves an upfront payment of AUD $800,000 (approximately USD $554,700), with an additional AUD $1.5 million (around USD $1 million) in shares to be distributed to Serenade’s shareholders. This contingent payment hinges on the new entity meeting specific revenue targets—AUD $4 million (USD $2.77 million) in revenue and AUD $500,000 (USD $346,700) in earnings before interest and taxes (EBIT) within 12 months of the deal's closure.
Serenade has carved out a niche in the digital collectables space, recognized for its innovative marketplace that has attracted notable global artists, including Liam and Noel Gallagher, Muse, Sum 41, and Thirty Seconds to Mars. The start-up’s NFC-enabled Smart Formats, launched in January 2024, have seen remarkable growth, with sales surging 56% month-over-month and over 12,000 units sold in the first half of the year.
The company boasts partnerships with over 100 record labels, including industry giants like Warner Music Group, Beggars Group, and PIAS, reinforcing its leadership in the Web3 sector. Serenade focuses on creating collectible physical and digital music products, enhancing the experience for fans with high-resolution music and additional audio, image, and video content.
One of Serenade’s standout products is Noel Gallagher’s “Digital Pressings,” which includes a digital album, EP, and singles accompanied by high-resolution audio and various bonus content. This innovative approach to music distribution positions Serenade as a pioneer in merging traditional music formats with modern digital technology.
Looking beyond music, Serenade is exploring opportunities in other entertainment sectors, including sports. This expansion aligns with Vinyl Group’s commitment to enhancing its profitability in its fastest-growing division. Under the agreement, Serenade’s CEO, Max Shand, will continue to lead the company, ensuring a seamless transition and ongoing strategic vision.
“I’m thrilled to announce the acquisition of Serenade by Vinyl Group, Australia’s only ASX-listed music company,” said Shand. “From our very first conversation, it was clear that Josh, Jorge, and the Board shared our vision for supporting artists and audiences through outstanding music products, and I’m excited to see how this partnership accelerates our impact.”
This acquisition marks a significant step for Vinyl Group as it diversifies its portfolio and strengthens its foothold in the digital landscape. With a shared vision and innovative products, the partnership between Vinyl Group and Serenade is poised to enhance the way music is experienced and enjoyed in the digital age.
September 2024, Cryptoniteuae