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Snap Interactive (STVI) Will Advance its Growth Strategy

By M. Marin


In September, LiveXLive Media, Inc. agreed to acquire Snap Interactive (OTC:STVI), which operates leading live video social networking and interactive dating applications. LiveXLive made a roughly $34.0 million, or $5.06 per share, bid for Snap. The deal was contingent upon LiveXLive fulfilling conditions, including raising funds through a public offering. 

Earlier this week, Snap Interactive announced that it had terminated the merger agreement because certain conditions had not been met by the October 27, 2017 deadline. The deadline had already been extended once. 

With the merger agreement terminated, Snap can proceed with its original growth strategy. 
The company had implemented a three-year plan focused on mobile, on strengthening its existing products and launching new social, video and dating apps within those products and on live video and the development of new live video social and dating apps. 

Proprietary Live Video Technology

We believe the proposed acquisition by LiveXLive underscores the value of Snap Interactive’s technology platform and its growth prospects. Live video is in the early stages of adoption. It presents an attractive growth opportunity, we believe, as its use continues to rise. In fact, Snap management believes that live video is on-track to become a key factor in social networking, messaging and online business applications. 

Snap’s video chat apps allow users to message or talk with other people and simultaneously view them through live video. People can conduct live video chats one-on-one or with many users, as Snap can operate thousands of streams simultaneously. Moreover, Snap has a strong intellectual property position to support its technology, with 25 issued patents that Snap has successfully defended in the past.  


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