Stingray Acquires The Singing Machine Company to Bolster its In-Car Karaoke Offering with Integrated Microphones

Executive Summary

• Stingray Group has acquired the assets of The Singing Machine Company, the worldwide leader in consumer karaoke products and hardware, to cement its leadership in the global karaoke market.
• The transaction includes The Singing Machine's global home karaoke business, encompassing all associated intellectual property, customer and supplier contracts, and inventory.
• The acquisition integrates a beloved hardware brand into Stingray’s portfolio, aiming to create a fully integrated karaoke experience by combining Singing Machine’s hardware with Stingray’s extensive library of licensed karaoke tracks.

Key Details

• Transaction Structure: Acquisition of assets of The Singing Machine Company.
• Assets Included: Global home karaoke business, all associated intellectual property, customer contracts, supplier contracts, and inventory.
• Strategic Focus: Growth of innovative microphone solutions specifically for the in-car entertainment market.
• Target Company Profile: The Singing Machine has been the premier provider of home karaoke systems for over four decades, having sold tens of millions of karaoke machines and over 50 million microphones to date.
• Integration Strategy: Combining Singing Machine’s renowned hardware with Stingray’s extensive karaoke library and global distribution network to enhance at-home and in-car karaoke experiences.
• Existing Footprint: The acquisition expands Stingray’s existing karaoke footprint, which already includes the Stingray Karaoke app (a subscription service available on TV, web, mobile, and in-car) featuring the world’s largest licensed karaoke library.
• Target Brand Strength: Singing Machine is the #1 global brand in home karaoke for over 40 years, with products sold in over 25,000 locations worldwide (including Amazon, Costco, Sam’s Club, Target, and Walmart) and marketing under proprietary brands and popular licenses (Carpool Karaoke, Sesame Street).

Notable Quotes

• Eric Boyko, President, Co-founder, and CEO of Stingray: "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."
• Gary Atkinson, CEO of The Singing Machine Company: "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."