MelodyVR, the virtual reality live music company, raised £8.1 million ($11.2 million) in a share offering and sale of convertible notes to fund its integration with the veteran music streaming service, Napster.
Both the companies have something to gain from this unusual merger. It will be a huge assistance for MelodyVR to build some brand recognition that it lacks unlike global brands such as Apple, Spotify, Amazon, and Google.
Furthermore, MelodyVR Group PLC is planning to change its name to Napster Group PLC which shall be finalized in the next general meeting. The company will also benefit from Napster’s 90-million track catalog, subscription revenues, and a ready audience for its virtual reality content.
On Napster’s end, the company will gain a motivated owner by becoming a wholly-owned subsidiary of the much smaller MelodyVR. To compare the two, Napster brought in $106 million worth of revenue in the previous fiscal whereas MelodyVR stood at $269,000.
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