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Offer From LiveXLive Represents a Roughly 59% Premium to Current STVI Share Price

By M. Marin


Technology company Snap Interactive (OTC:STVI) strives to be a leader in social products that deliver live video through mobile platforms. The company operates several prominent social networking and interactive dating applications that allow people to share live video. A 2016 merger strengthened the company’s product portfolio and expanded its user base. 

Earlier this week, LiveXLive Media agreed to acquire Snap Interactive for roughly $34.0 million. LiveXLive is a leading premium streaming network devoted to live music and music-related video content. It is publically traded with a market capitalization of roughly $3.2 billion. The shares trade under the symbol LIVX. The LiveXLive offer equates to approximately $5.06 per STVI share, which represents about a 59% premium to their current $3.18 price.

If the merger is consummated, LiveXLive intends to maintain Snap's existing slate of apps and cited group video chat as a key factor driving the transaction. According to LiveXLive, the acquisition will help it bring consumers “a greatly enhanced viewing experience through group video chat, and other social and relationship building features.” This underscores Snap management’s view, we believe, that the easy-to-use interface of Snap’s video chat apps represents a key competitive advantage. 

LiveXLive plans to integrate Snap's technology into its existing platform to enhance the LiveXLive online community experience. Snap’s video chat apps allow users to message or talk with other people and simultaneously view them through live video. Snap’s proprietary technology is supported by a portfolio of 25 issued patents.


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