SPHERE ENTERTAINMENT ACQUIRES HOLOPLOT

Rhea-AI Summary

Sphere Entertainment Co. (NYSE: SPHR) has acquired HOLOPLOT GmbH, a global leader in 3D audio technology, after their successful partnership in developing Sphere Immersive Sound. This acquisition aims to enhance immersive experiences and audio technology, showcasing Sphere Entertainment's dedication to innovation in live audio experiences.

Positive

• Acquisition of a global leader in 3D audio technology, expanding Sphere Entertainment's capabilities in immersive experiences.

• Sphere Immersive Sound, powered by HOLOPLOT, revolutionized the live audio experience at Sphere in Las Vegas.

• HOLOPLOT's proprietary technology focuses on sound control, intelligence, and quality, transforming audio delivery for outstanding listening experiences.

Negative

• None.

Insights

Market Research Analyst

The acquisition of HOLOPLOT by Sphere Entertainment marks a strategic move to consolidate their innovations in the immersive entertainment and 3D audio technology sector. By integrating HOLOPLOT's proprietary audio technology, Sphere Entertainment can potentially create a differentiated product offering that stands out in the competitive entertainment industry. This technology promises highly targeted, consistent and immersive audio experiences that could enhance Sphere Entertainment's live events, making them more appealing to consumers seeking unique experiences. The focus on immersive experiences aligns with current entertainment trends, where consumers are increasingly looking for unique, high-fidelity experiences. The previous partnership and now full ownership could streamline innovation and time-to-market for Sphere's future products. However, the success of this acquisition will hinge on effective integration and the continued development of innovative applications of the technology. There's also the consideration of how this acquisition could affect Sphere Entertainment's operational costs and whether the market will rapidly adopt the advanced audio systems. Investors should monitor Sphere's ability to leverage this technology to drive growth and enhance profitability over the long term.

Financial Analyst

Sphere Entertainment's acquisition of HOLOPLOT is a strategic investment that can have financial implications for the company's performance. The prior investment in 2018 and collaboration on Sphere Immersive Sound indicates that Sphere sees potential in leveraging HOLOPLOT's technologies to generate revenue and possibly capture a larger market share in the high-end audio experience market. The full acquisition suggests that Sphere Entertainment is confident in the financial viability of HOLOPLOT's technologies. Furthermore, the continued operation of HOLOPLOT as a wholly owned subsidiary in Berlin may provide Sphere with operational and tax efficiencies. It is important for investors to consider the cost of the acquisition and how Sphere plans to fund it, whether through cash reserves, debt, or other means. How the acquisition is reflected on the balance sheet and its effect on the earnings per share, will be a critical aspect for investors to consider, especially in upcoming financial reports. Long-term, investors should track the ROI of this purchase and whether it leads to new revenue streams or enhances existing ones.

Tech Industry Analyst

The tech landscape within the entertainment industry is rapidly evolving and Sphere Entertainment's acquisition of HOLOPLOT can be seen as a move to solidify its position in the market. HOLOPLOT's 3D audio technology is not just an incremental improvement in sound systems but represents a transformative leap in creating immersive audio environments. This is particularly significant as entertainment consumers are increasingly valuing the quality of their sensory experiences. The ability to control sound propagation and localization technologically is a competitive edge in live performances, potentially enabling Sphere to offer personalized experiences. From a technological standpoint, the integration of such sophisticated systems requires substantial expertise in software and hardware engineering, which Sphere will need to maintain and further develop within their new subsidiary. How effectively Sphere can absorb HOLOPLOT's tech and talent will likely be a key driver of the technology's success in the market. Investors should be aware of the potential for technology adoption barriers and watch for Sphere's strategies in overcoming them.

Acquisition Expands Sphere Entertainment's Capabilities And Enables Further Innovation Across Immersive Experiences And 3D Audio Technology

NEW YORK and BERLIN, May 13, 2024 /PRNewswire/ -- Sphere Entertainment Co. (NYSE: SPHR) ("Sphere Entertainment") today announced that it has acquired all of the remaining shares it did not previously own of HOLOPLOT GmbH ("HOLOPLOT"), a global leader in 3D audio technology. Sphere Entertainment made its first investment into HOLOPLOT in 2018 when the two companies partnered to develop Sphere Immersive Sound, powered by HOLOPLOT, which revolutionized the live audio experience when Sphere opened in Las Vegas in September 2023.

In a joint statement on behalf of Sphere Entertainment, David Dibble, CEO, MSG Ventures and Paul Westbury, EVP, Development and Construction, said: "HOLOPLOT is at the forefront of audio innovation, and their custom-designed technology has already transformed what is possible for concert-grade sound. This acquisition reflects our Company's commitment to staying on the cutting-edge of immersive experiences as we explore growth opportunities for both Sphere and HOLOPLOT."

"We have worked alongside the Sphere team for many years in developing our technology, and together we have forever changed the live sound experience," said Roman Sick, CEO and Co-Founder of HOLOPLOT. "As a result of this transaction, HOLOPLOT can accelerate its mission to bring its technologies to more applications and markets, and continue to push audio innovation to new bounds."

The world's largest, fully integrated concert-grade audio system, Sphere Immersive Sound powers unparalleled listening experiences at Sphere in Las Vegas. Sphere Immersive Sound was first introduced in 2022 at the Beacon Theatre in New York, which is operated by Madison Square Garden Entertainment Corp. and part of the MSG Family of Companies along with Sphere Entertainment.

Berlin-based HOLOPLOT has enabled a new generation of audio experiences with its proprietary audio technology. HOLOPLOT's proprietary technology is focused on sound control, intelligence and quality to transform how audio is delivered. By enabling precise and digital control of sound propagation and localization, the resulting audio is highly targeted, consistent, and immersive, providing audience members with an outstanding listening experience.

The transaction has closed. HOLOPLOT will remain based in Berlin and operate as a wholly owned subsidiary of Sphere Entertainment as it continues to grow its business and serve its customers and clients.

About Sphere Entertainment Co.
Sphere Entertainment Co. is a premier live entertainment and media company. The Company includes Sphere, a next- generation entertainment medium powered by cutting-edge technologies to redefine the future of entertainment. The first Sphere venue opened in Las Vegas in September 2023. In addition, the Company includes MSG Networks, which operates two regional sports and entertainment networks, MSG Network and MSG Sportsnet, as well as a direct-to- consumer and authenticated streaming product, MSG+, delivering a wide range of live sports content and other programming. More information is available at sphereentertainmentco.com.

About HOLOPLOT

HOLOPLOT is a pro audio company from Berlin, driven by enabling the next generation of audio experiences and transforming the way society engages with sound. HOLOPLOT technology enables users to provide pristine sound quality for all, with integrated immersive capabilities for increased creative freedom.

The company's technology is science-based, software-driven, and hardware-enabled — granting users unparalleled tools for ultra-precise control over sound propagation and localization. Its products offer a host of advantages for customers across a broad spectrum of applications such as live entertainment, immersive and experiential environments and corporate applications.

HOLOPLOT has received numerous awards, including the prestigious industry AV Award "Audio Technology of the Year" and the PLASA "Innovation Award," as well as "Best in Show" awards from both ISE ('22, '23 & '24) and InfoComm 2022 and featured in the TIME Best Inventions list of 2022.

Contact:
Sphere: SpherePR@thesphere.com

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SOURCE Sphere Entertainment Co.

FAQ

What did Sphere Entertainment acquire?

Sphere Entertainment acquired HOLOPLOT GmbH, a global leader in 3D audio technology.

What is the stock symbol of Sphere Entertainment?

The stock symbol of Sphere Entertainment is SPHR.

When did Sphere Entertainment first invest in HOLOPLOT?

Sphere Entertainment made its first investment in HOLOPLOT in 2018.

Where is HOLOPLOT based?

HOLOPLOT is based in Berlin.