Santa Monica-based Launch Media, which operates the popular Launch.com Web site, has purchased the music/extreme sports package Warped Tour — put together by the Creative Artists Agency, music industry vet Kevin Lyman and the entertainment law firm of Codikow, Carroll, Guido & Groffman six years ago — for $12 million to $18 million, almost all in stock.
The final amount will depend on incentives built into the agreement, which calls for full payment within five years.
The acquisition enables Launch, which posted $18 million in revenues last year, but has yet to turn a profit, to use its detailed customer profiles of more than 3.5 million users to boost sales of future Warped Tour tickets as well as offer integrated sponsorship opportunities to advertisers.
In addition to making the tour’s official Web site (warpedtour.com) one of its online properties, Launch gains a wealth of concert tour footage for use on its own site.
In the wake of Monday’s announcement, Launch stock, which trades on Nasdaq, closed at $7.38, down 75¢. Launch’s market cap is $99 million.
Tour takes in $6.5 mil
Officially known as the Vans Warped Tour — after the Santa Fe Springs, Calif.-based footwear and clothing company, which is its main sponsor — the daylong combination of music and extreme sports demonstrations reportedly racked up about $6.5 million in revenues last year.
Featuring performances by Green Day, the Mighty Mighty Bosstones, the Long Beach Dub Allstars and many others, this year’s Warped Tour will include 39 concerts in a six-week period beginning later this month. The CAA, Lyman and Codikow, Carroll, Guido & Groffman troika will continue to oversee the tour’s booking, production and creative aspects.