Vinyl Group now has a fourth pillar.
Following the completion of its acquisition of The Brag Media, the Sydney-based music and technology specialist is resuming its mission to monetise and integrate its new asset.
As previously reported, the transaction is being funded with a new investment from the billionaire founder and CEO of WiseTech Global Richard Whitethrough an A$11 million ($7.5 million) placement and debt facility, bringing together the only Australian Stock Exchange (ASX)-listed specialist music company with the market leader in high-quality youth content and events.
“Our real mission or vision that we all have at the company is to empower and fuel all aspects and parts of the music ecosystem,” Vinyl Group CEO Josh Simons says Advertising sign.
When the group, previously known as Jaxsta before rebranding in early December, spotted an opportunity with The Brag Media, “we also knew the company would evolve into a music portfolio company,” Simons continues.
Prior to the acquisition, Vinyl Group's portfolio was built on the three pillars of its Jaxsta music credit business. the music industry's leading social-professional network and talent marketplace Vampr. and Vinyl.com, the online record store. The Brag Media, with the range of titles it includes Rolling Stone AU/NZ, Australia variety, deaf and commercial title The Music Networkis its fourth pillar.
Vinyl.com is a “very fast-growing e-commerce platform, it speaks to the fan,” Simons continues, “but a huge part of connecting the dots here is connecting the fans as creators, the media and the events and what the The Brag fills that void.” When the opportunity came to the table and “when we knew what direction they were boldly heading in, it made a lot of sense and got us excited very quickly.”
The merger of both businesses presents “some really obvious low-level synergies,” he explains, pointing to the sales synergies between Vampr and The Brag Media as an example, “but overall, it's opened a hole in that broader service flywheel of everyone involved in the musical ecosystem”.
People, product and process – “that's really always my focus,” explains Simons.
Vampr co-founder Simons was elevated from chief strategy officer to CEO in June 2023, succeeding Beth Appletonwho resigned as CEO with immediate effect.
“Revenue, cost efficiency and profitability remain the top priorities for Jaxsta,” Simons commented in at the time of his ascension“and I look forward to building on the current momentum.”
The agenda remains the same.
“The key KPI was four consecutive quarters of revenue growth and movement toward profitability,” says Simons. “In my tenure, we have released three quarters of performance. And every quarter, we've averaged 204%, quarter over quarter.” Brag “turbo charges this” deal.
The completion of the acquisition was confirmed in a statement on February 1, when the stock was trading at $0.063. At the close of trading today (February 8), VNL stock was trading at $0.066, with a market capitalization of $41.73 million.
Before the deal closes, The Brag Media has strengthened its executive team with a trio of appointments. Dane Robertson has returned to the company in the newly created role of head of client engagements and events in Australia and New Zealand, following a stint at media company Pedestrian Group. Also, Denise Barnes has joined as director of client projects after more than six years with lifestyle site Man of Many, most recently as head of branded content, and Anan Salvarinas has joined the team as senior creative strategist, after two and a half years with LADbible Australiaincluding a recent showing as a senior creative (brand).
This year is “significant” for the business “as we focus on integrating The Brag Media into Vinyl Group properties as well as continued strong growth of our technology products,” Simons explained on February 1. listing on the ASX. “We now have a very clear path to profitability.”
from our partners at https://www.billboard.com/business/business-news/vinyl-group-synergies-profitability-brag-media-acquisition-1235602751/