Vinyl Group, an Australian music technology company, recently announced its acquisition of a London-based Web3 start-up, Serenade. This acquisition will enable Vinyl Group to expand its presence in the digital collectables space. The deal includes an upfront payment of AUS$800,000 with an additional AUS$1.5 million in shares to be paid to Serenade’s shareholders. The additional payment is contingent on the newly combined entity achieving certain revenue and earnings targets within the first 12 months post-acquisition. Serenade has gained recognition for its digital marketplace, with major global artists such as Liam and Noel Gallagher, Muse, and Thirty Seconds to Mars on board.
Serenade is known for its NFC-enabled Smart Formats, which have seen significant growth, with sales increasing 56% month-over-month and over 12,000 units sold in the first half of the year. The start-up also has partnerships with over 100 record labels, including industry heavyweights like Warner Music Group and Beggars Group, solidifying its position as a leader in the Web3 space. Serenade’s digital marketplace offers collectable physical and digital products that include high-resolution music, bonus audio, image, and video content. They have listed Noel Gallagher’s “Digital Pressings,” which are digital albums, EPs, and singles with bonus content that can be streamed on their platform.
The acquisition of Serenade by Vinyl Group will see Serenade operating alongside Vinyl Group’s brand, Vinyl.com. The focus will be on improving the profitability of Vinyl Group’s fastest-growing division. As part of the agreement, CEO Max Shand will continue to lead Serenade under a full-time employment contract with Vinyl Group. Shand expressed excitement about the partnership, stating that Vinyl Group shares their vision for supporting artists and audiences through outstanding music products. The acquisition marks Vinyl Group’s commitment to doubling down on technology and expanding its offerings beyond music into other entertainment sectors, such as sports.
Vinyl Group’s acquisition of Serenade reflects the company’s strategic move to strengthen its position in the digital collectables market. By incorporating Serenade’s innovative technology and partnerships with global artists and record labels, Vinyl Group aims to enhance its digital marketplace and drive growth in the Web3 space. The integration of Serenade’s assets and expertise into Vinyl Group’s operations will enable both entities to leverage their strengths and resources to create unique and engaging digital collectables for consumers. The acquisition aligns with Vinyl Group’s long-term vision of providing cutting-edge music products and services to artists and audiences worldwide.
The music industry continues to evolve rapidly, with digital technologies playing a crucial role in shaping its future. Vinyl Group’s acquisition of Serenade highlights the increasing focus on Web3 solutions and digital collectables within the music sector. By joining forces with Serenade, Vinyl Group is positioning itself as a frontrunner in this space, leveraging Serenade’s proven track record and industry partnerships to drive innovation and growth. The acquisition signals Vinyl Group’s commitment to staying at the forefront of technological advancements in music and entertainment, ensuring its continued relevance and success in a rapidly changing industry landscape.
