Genius Media, a Brooklyn-based lyrics-database firm that was formerly called Rap Genius, has reportedly been acquired for more than $80 million by app and online media holding company MediaLab.
The widely used lyrics-database firm has stated that it has agreed to sell itself to MediaLab. Genius stated that MediaLab's dedication to invest in musicians and fan-made communities makes them the right partner to take Genius forward.
The company added that Genius would not exist without the dedicated efforts of its whole team. The company is extremely thankful to everyone who has helped make Genius what it is today.
According to reliable reports, MediaLab would be laying off employees at Genius as a result of the acquisition. Genius and MediaLab have not confirmed the number of people they intend to pink-slip.
MediaLab, which is based in Los Angeles, stated that the firm is reorganizing the way original content is generated at Genius, and as part of that, several extremely brilliant employees on the content and production teams have been let go.
MediaLab added, the size of the community platform is what brought MediaLab to Genius, and the company would be investing substantially in the firm moving forward, with a renewed emphasis on up and coming artists.
Recently, Genius had raised more than $77.7 million in investment from a number of backers, including Quicken Loans, Cleveland Cavaliers; owner of Dan Gilbert, Andreessen Horowitz, as well as artists Nas, Pharrell Williams, and Eminem.
Genius’ obligations to preferred stakeholders surpassed the sale price of $80 million, consequently investors would not be paid out in full.
According to MediaLab's website, its portfolio of apps and online brands has more than 80 million monthly active consumers. The firm’s holdings include enterprises such as Whisper, Kik, Datpiff, Worldstar Hip Hop, and Amino among others.
As per Genius claims, the company has over 100 million users across the world with more than 2 million contributors to the Genius lyrics database.