Algorhythm Sells Singing Machine Karaoke Business to Stingray for $4.5M.

Algorhythm Holdings has sold its Singing Machine karaoke consumer electronics business to Stingray for $4.5M in cash and the assumption of liabilities. The transaction eliminates approximately $4 million in liabilities, improving Algorhythm's balance sheet. Stingray's acquisition of the Singing Machine karaoke business is expected to fuel momentum in the semi-cab market and drive a shift towards growth.

In a strategic move to expand its market presence and diversify its offerings, Stingray Group (TSX: RAY.A; RAY.B) has acquired the Singing Machine karaoke consumer electronics business from Algorhythm Holdings for $4.5 million in cash and the assumption of liabilities. The transaction is expected to enhance Stingray's position in the global karaoke market and drive growth in the semi-cab market.

The acquisition involves the purchase of Singing Machine's karaoke hardware business, including all associated intellectual property, customer, supplier contracts, and inventory. This deal is part of Stingray's broader strategy to integrate beloved hardware brands into its extensive portfolio of multi-platform music services [1].

Stingray's acquisition of the Singing Machine business is expected to eliminate approximately $4 million in liabilities, thereby improving Algorhythm's balance sheet. The integration of Singing Machine's hardware with Stingray's vast catalog of licensed karaoke tracks presents a unique opportunity to create a fully integrated, best-in-class karaoke experience for consumers [1].

Stingray's CEO, Eric Boyko, expressed his enthusiasm for the acquisition, stating, "Having worked closely with The Singing Machine for years, we have always been impressed by their expertise and leadership in the consumer karaoke space. This acquisition is a natural evolution of our partnership. By combining their renowned hardware with our extensive karaoke library and global distribution network, we will enhance the at-home and in-car karaoke experience for millions of fans. We see tremendous potential in developing new microphone technologies, especially for the expanding in-car entertainment market, creating exciting new opportunities for growth" [1].

Gary Atkinson, CEO of The Singing Machine Company, also expressed his confidence in Stingray's leadership, stating, "Singing Machine is the #1 global brand in home karaoke for over 40 years, and I’m proud of the legacy we’ve built. With Stingray’s deep expertise in music content, global partnerships, and digital innovation, I’m confident that under Stingray’s leadership, the brand will continue to thrive and dominate the karaoke hardware market for many more decades to come" [1].

This acquisition expands Stingray’s karaoke footprint, which already includes the popular Stingray Karaoke app, a subscription service available on TV, web, mobile, and in-car with the world’s largest licensed karaoke library [1].

References

[1] https://finance.yahoo.com/news/stingray-acquires-singing-machine-company-120000836.html