17Live has acquired Japanese entertainment startup mikai Inc, which owns popular virtual talent production company Re:Act.
In a bourse filing, the company says that the acquisition is expected to strengthen 17Live’s virtual live streamer (V-liver) business by expanding its portfolio. Financial details of the transaction were not disclosed.
This follows the recent full acquisition of N Craft, a company focused on developing and managing virtual talents, on Nov 4.
Mikai, which was established in 2016, gained recognition with the release of a well-received virtual reality game and was selected for the Tokyo XR Startups program.
Re:Act features virtual artists such as Leona Shishigami, who has over 330,000 subscribers on YouTube, as well as Kyo Hanabasami, who has more than 320,000 subscribers.
According to the group, the acquisition is set to “foster closer partnerships with existing V-livers, providing them with guidance to build unique identities that are crucial for the success of IP development”.
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The acquisition will also drive the “17Live Forward Strategy”, which positions the group for long-term growth through platform enhancement, diversification of revenue streams and strategic partnerships. With the addition of mikai, 17Live will be set to capitalise on the growing global demand for virtual influencers and the Japanese animation sector, the company adds.
Jiang Honghui, executive director and CEO of 17Live, says: “By integrating mikai’s leading VTuber assets into our platform, we are well-positioned to drive future growth and elevate 17Live into an IP-powered livestreaming entertainment platform. This strategic move aligns with our vision of diversifying our offerings, expanding our virtual IP business, and unlocking new revenue streams for long-term success."
Takahiro Uemura, CEO of mikai, adds: "It is an honour to join the 17LIVE Group. VTuber content is rapidly gaining traction alongside video games and anime films. With the growing global demand for anime and virtual content, joining 17LIVE is a pivotal step in unlocking further growth opportunities together. We look forward to realising our shared vision with the 17LIVE team and shaping the future of virtual entertainment.
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The acquisition is not expected to have any material impact on the consolidated net tangible assets per share and earnings per share for the group for the financial year ending Dec 31.
Shares in 17Live closed 0.5 cents higher, or up 0.51%, at 99 cents on Nov 25.
