Latest news with #JohnAcunto
Forbes
22-05-2025
- Business
- Forbes
This Puzzling Metaverse Company Just Renamed Itself Napster
John Acunto, Cofounder & CEO of metaverse company Infinite Reality, which recently renamed itself Napster after acquiring the music sharing application for $207 million A Florida-based upstart called Infinite Reality held a private investors-only Zoom meeting on May 15, at which it told some of its 1,500 shareholders that it was rebranding itself as Napster Corporation, a nod to the peer-to-peer file sharing application cofounded in 1999 by Facebook's first president and now billionaire Sean Parker. (He's no longer affiliated with Napster.) The once-revolutionary app, which had some 75 million users at its peak, declared bankruptcy in 2002 after a U.S. copyright infringement ruling. It has since bounced around, picked up by Roxio, then Best Buy and later repackaged as a Spotify rival, recently ranking just 39th among music apps, Infinite Reality, which had been pitching itself until recently as a metaverse shop, acquired music-streaming company Napster in a $207 million deal in March. At the time, Napster had unpaid royalty fees of more than $56 million; its CEO Jonathan Vlassopulos resigned last week. Now Infinite Reality is rebranding itself as Napster, a provider of 'AI-powered digital experiences.' In that same call, the company told investors of a new plan for them to get liquidity, explaining that they could sell back their shares at $20 a pop (before fees) starting in June, thanks to an unidentified investor. Assuming Infinite Reality's share count hasn't materially changed in the last couple of months, that would imply at least $18 billion valuation—or more than 240 times its $75 million revenue last year. This is not the young company's first rebranding. John Acunto and some investors bought bankrupt social media Tsu in 2019. Later renamed Display Social, it brought in just $150,000 in revenue for the first three years combined. Acunto pivoted the company again in 2022 when he acquired production company Thunder Studios and nascent firm Infinite Metaverse in an all-stock deal for $235 million in January 2022. With a new name, Infinite Reality went on a shopping spree, picking up nine more companies, each one boosting the firm's valuation. Got a tip for us? Contact reporters Phoebe Liu at pliu@ and +1 678-834-4200 for Signal or WhatsApp, and Iain Martin at or +1 646-739-6427 for Signal or WhatsApp. It's the fourth time since 2022 that Infinite-Reality-now-Napster has promised to let investors cash out, but so far none have panned out. Around the same time the company rebranded as Infinite Reality, it also filed paperwork with the SEC to go public via a reverse merger. That fell through in December 2022. Two weeks later came an agreement to go public via SPAC, but that didn't happen either. (It began termination of the agreement in December, and the blank-check company is suing Napster over an alleged $7 million unpaid termination fee.) In January, shortly after announcing $3 billion in funding from an anonymous investor, the company announced a secondary share sale through Nasdaq Private Market, a trading platform for private company share sales. In a February investor call when he discussed the Nasdaq Private Market deal, CEO John Acunto boasted about how much wealth the company had created for its shareholders. 'We have over 600 millionaires as a result of their investment in Infinite Reality,' Acunto said. 'I want to remind you that our job is not just to create a great company, but to create value for our shareholders … and give you an opportunity to get that value extracted from the market.' But some shareholders were pretty jaded by this point. 'When I heard about the secondary market set of transactions, I was like, oh, cool, the latest in a line of things that's never going to materialize,' says a shareholder and former employee of the Nasdaq Private Market deal. It turned out they had good reason. First, the Nasdaq Private Market webpage to trade Infinite Reality shares was taken offline, then the deal was called off as of May 7, according to Gillian Sheldon, Napster's head of communications, who claimed that it was a mutual decision made by Napster and the trading platform. Nasdaq Private Market didn't respond to a request for comment and directed multiple shareholders' inquiries to Infinite Reality (now Napster). The latest promise to let investors sell shares appears to center around an anonymous investor represented by brokerage firm Cova Capital. According to its website, the Long Island-based firm has worked on transactions with Palantir, SpaceX and AI startup Cohere. Broker-dealer watchdog Financial Industry Regulatory Authority fined Cova $30,000 in March this year for recommending three private share sales to retail investors without 'conducting due diligence sufficient to form a reasonable basis to believe that the offerings were suitable for, or in the best interest of, at least some investors.' That included claims that Cova didn't do enough to make sure the issuer actually had the rights to the shares or determine how much the shares had been marked up; Cova paid the fine 'without admitting to or denying the findings.' 'We represent an investor who has executed an indication of interest to make an offer to existing shareholders that will afford shareholders of record on May 31st, two weeks from today, a liquidity opportunity,' Edward Gibstein, CEO of Cova, told Napster investors on the May 15 call. Gibstein added that the investor had signed a letter of intent. Kendall Cluff, an account executive at cap table management firm Carta (which is set to administer the transaction), said that 'we don't know the exact amount of seller interest until we run the transaction, but we expect that it would end up being a multi-billion dollar transaction.' Cova and Napster have a relationship going back to 2021, per Gibstein—before it embarked on a string of headline-grabbing all-stock transactions for startups like Landvault and the Drone Racing League. An SEC filing tied to Napster's July 2024 fundraise also lists Cova as the broker. Around that time, Cova was trying to pitch six-month, high-interest (33%) loans with warrants to purchase Napster stock at a 'discounted' valuation of $1.25 billion, per documents viewed by Forbes. That same document indicated that if the company raised $20 million or more in equity funding before the loan was due, the investor could choose to get paid back early, at a lower interest rate. Per that document, that should have kicked in back in July, when Napster raised $350 million and in January, when the company said it raised $3 billion. But two investors who say they signed similar documents told Forbes they haven't yet been repaid. Five investors sued Napster in May alleging nonpayment of such loans, even after they sent the company a notice of default in December. A Napster spokesperson said the notes are in 'various stages of repayment.' Cova CEO Gibstein didn't respond to a request for comment on this latest deal, but he did comment on May 15, hours before announcing the offer to shareholders. At the time, Forbes was trying to figure out who had reportedly invested $3 billion in then-Infinite Reality at a $12 billion valuation. Gibstein wouldn't disclose the investor's identity, citing a non-disclosure agreement, but said he was a Cova client and confirmed that the company's big fundraising was 'not a debt transaction.' After Forbes published an investigation about Infinite Reality (now Napster) and its anonymous investor in April, the company issued a press release 90 minutes later, stating that 'following high media interest, Infinite Reality's $3B investor has come forward' and that Sterling Select, a New York venture development firm represented 'the significant $3 billion investment.' The press release was later amended to clarify that Sterling Select 'represents the investor,' but it never did reveal the investor's identity. The company's chief marketing officer KaringaKogan later told Forbes that Sterling Select isn't the $3 billion investor, but that it introduced Napster to 'investors' who in turn wrote the checks. Sterling Select did not respond to multiple requests for comment. All of this is just the latest chapter in the saga of a puzzling company. For many investors, the chance to cash out in June can't come soon enough. Many of these individuals have little experience in startup and tech investing and wrote checks as small as $50,000, hoping Napster would be the next big thing. 'Are these guys scam artists, or did I get very lucky to get into the next greatest company in AI?' a shareholder wrote to Forbes. In response, Napster's head of comms Sheldon wrote that 'the many individuals we have spoken to since our internal investor update are very pleased with the liquidity offer, and we're happy to say they represent the overwhelming majority.' Another shareholder told Forbes that their broker 'can't find me a buyer at my cost of under $2' per share, let alone $20, as recently as last week. His broker? Cova's Gibstein.
Channel Post MEA
17-04-2025
- Business
- Channel Post MEA
Infinite Reality Acquires Agentic AI Company Touchcast For $500M
Infinite Reality has entered into a definitive agreement to acquire Touchcast, a pioneering agentic AI company for $500 million in a combination of cash and stock. The acquisition is Infinite Reality's largest yet, and the transaction agreement values the company at $15.5 billion. Touchcast's powerful agentic AI platform, known as Mentorverse , generates an infinite universe of specialized AI mentors who engage in natural, face-to-face video conversations and, unlike traditional chatbots or static web experiences, combine consistent personalities with deep domain expertise to deliver genuinely helpful guidance through natural, multimodal interactions. The integration of Touchcast's technology across Infinite Reality's portfolio of products and services will enable iR customers to tap AI agents for a number of tasks that drive user engagement, customer support, and sales. For example, within Napster (recently acquired by iR), Touchcast tech will enable subscribers to easily generate immersive social listening spaces and leverage knowledgeable AI agents for music playlisting, community management, and music trivia, among other engaging features. For iR Enterprise and iR Studio customers, the Touchcast toolkit empowers Fortune 500 brands, SMEs, and creators with knowledgeable, trained, and on-brand AI agents designed to power global and scalable sales and customer service functions. Touchcast, built on OpenAI and delivered on Microsoft Azure via a $50 million strategic partnership, provides a suite of groundbreaking AI delivery systems that dramatically improve response times for AI interaction. For businesses, this means the ability to deliver seamless, human-like experiences while boosting efficiency and reducing costs—a vital edge in today's competitive digital landscape. Touchcast's platform is turning what once required entire teams and years of work into one-click solutions with multiple products ranging from AI mentors to transforming websites into interactive AI experiences, and more. Touchcast's enterprise-grade technology is SOC2 compliant with global scalability. The company holds 27 patents related to AI and interactive video technology, including systems for coordinated presentations, video conferencing enhancements, and intelligent virtual assistant systems. Touchcast's AI mentors interact like humans, not chatbots, work together as a team of specialized agents to build on each other's expertise and solve complex challenges, and deliver immediate ROI by elevating the online experience. Led by seasoned entrepreneurs and trusted by top global enterprises across automotive, home improvement, management consulting, and education categories, Touchcast is transforming how businesses adopt AI by making these advanced capabilities accessible to anyone, regardless of technical expertise. 'Agentic AI is a big part of how consumers and businesses will interact with the web in the future,' said John Acunto, CEO and Founder of Infinite Reality. 'The Touchcast technology has immediate applications across our entire business portfolio and will no doubt provide our customers with instant benefits – whether those customers are Napster subscribers and artists, global Fortune 500 brands, or small businesses. What Edo Segal and his team have developed at Touchcast will no doubt accelerate Infinite Reality's mission to lead a transition to a more immersive, personalized and conversational web.' Edo Segal, CEO and Founder of Touchcast, is a serial entrepreneur and AI pioneer who has spent over two decades building companies at the intersection of artificial intelligence and human communication. Segal is leading breakthrough innovations in how people access and share expertise through AI, fundamentally reimagining human-AI collaboration. Prior to Touchcast, he founded and successfully sold multiple companies including Relegence (acquired by AOL), Brainboost (acquired by and Screencaster (acquired by Livestream), consistently positioning himself at the forefront of technological transformation. 'Joining forces with Infinite Reality represents the ideal next chapter for Touchcast,' said Edo Segal, CEO and Founder of Touchcast. 'From day one, our mission has been to humanize AI— moving beyond chatbots to create intelligent, emotionally resonant experiences that feel intuitive and alive. iR not only shares that belief and has the platform to bring our technology to scale across industries and audiences, but together we can empower a new generation of creators and businesses to deliver expertise, storytelling, and service in ways that were unimaginable until now.' 'The acquisition of Touchcast marks our largest transaction thus far, and represents a perfect continuation of our strategic growth trajectory, building on the momentum from the iconic Napster acquisition and recent $3 billion funding round,' said Amish Shah, Co-Founder and Chief Business Officer, Infinite Reality. 'The addition of Touchcast's agentic AI technology serves as a powerful building block for our platform as we look to provide our customers with the tools they need to succeed in the modern AI-powered era.' 0 0
Yahoo
17-04-2025
- Business
- Yahoo
Infinite Reality to acquire Touchcast for $500m
Infinite Reality (iR), an AI and immersive technology company, has agreed to acquire Touchcast, a company specialising in agentic AI, in a cash and stock deal valued at $500m. The deal values Infinite Reality at $15.5bn and marks its largest acquisition to date. Touchcast's AI platform, Mentorverse, creates specialised AI mentors capable of engaging in natural, face-to-face video conversations. These mentors combine 'consistent personalities with deep domain expertise', offering multimodal interactions that differ from traditional chatbots. The technology is planned to be integrated across Infinite Reality's suite of products and services, including Napster, iR Studio, and iR Enterprise. Within Napster, Touchcast's platform will allow users to create 'immersive social listening' environments and use AI for playlist creation, community engagement, and music-related interactions. In iR Enterprise and iR Studio, the integration will provide enterprises and creators with AI agents tailored to enhance global customer service and sales functions. Infinite Reality CEO and founder John Acunto said: 'The Touchcast technology has immediate applications across our entire business portfolio and will no doubt provide our customers with instant benefits - whether those customers are Napster subscribers and artists, global Fortune 500 brands, or small businesses. 'What Edo Segal and his team have developed at Touchcast will no doubt accelerate Infinite Reality's mission to lead a transition to a more immersive, personalised and conversational web.' Touchcast operates on infrastructure built with OpenAI and hosted on Microsoft Azure through a $50m strategic partnership. The company holds 27 patents in AI and video technology, covering areas such as coordinated presentations, video conferencing enhancements, and intelligent virtual assistant systems. Touchcast's solutions are used by major enterprises in sectors including automotive, home improvement, consulting, and education. Touchcast CEO and founder Edo Segal said: 'Joining forces with Infinite Reality represents the ideal next chapter for Touchcast. 'From day one, our mission has been to humanize AI— moving beyond chatbots to create intelligent, emotionally resonant experiences that feel intuitive and alive. 'iR not only shares that belief and has the platform to bring our technology to scale across industries and audiences, but together we can empower a new generation of creators and businesses to deliver expertise, storytelling, and service in ways that were unimaginable until now.' In 2024, iR acquired UK-based Landvault in a deal valued at $450m. "Infinite Reality to acquire Touchcast for $500m" was originally created and published by Verdict, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Sign in to access your portfolio
Tahawul Tech
03-04-2025
- Business
- Tahawul Tech
Infinite Reality now available on Google Cloud Marketplace
Infinite Reality (iR)TM, an innovation company powering the next generation of digital media and ecommerce through spatial computing, artificial intelligence (AI), and other immersive technologies, recently announced that its immersive software and services are now available on Google Cloud Marketplace. This milestone expands distribution of iR's industry-leading technology and award-winning enterprise solutions. According to Coresight Research, brands that have invested in virtual stores have seen significant benefits, including a 67% increase in new customers, 77% more clicks to products, and an 88% uplift in sales, highlighting the meaningful benefits for interactive, 3D content to meet evolving customer expectations. 'Launching on Google Cloud Marketplace is an exciting step forward in our goal to make immersive experiences ubiquitous', said John Acunto, Co-Founder and CEO, Infinite Reality. 'We are witnessing a meaningful shift in how consumers, especially younger segments, are engaging with brands and believe that every enterprise should be leveraging immersive tech to meet their evolving needs. In Google Cloud we have found a powerful partner that can help us bring our solution to more clients'. Businesses looking for a full-service solution can access iR Enterprise, which provides bespoke, custom-built immersive experiences for Crate & Barrel, e.l.f. Cosmetics, Swarovski, and more. These tailored solutions include: Digital twins that create virtual replicas of real-world environments Virtual showrooms and tours that integrate with major ecommerce platforms like Shopify and Salesforce AI-powered assistants for personalised customer interactions 3D product digitisation that transforms 2D photos into interactive 3D visualisations XR-based applications for consumer headsets such as Metaquest and Apple Vision Pro Virtual fan communities that enable branded metaverse experiences for community events and viewing parties iR Enterprise has developed over five hundred immersive experiences for brands and government entities over the years and is continuously adding new capabilities for clients as technology and business objectives evolve. iR Studio is a self-service, no-code platform that allows brands to design, publish, and monetize 3D websites. With iR Studio, users can create a 3D experience leveraging several features including: A friendly, flexible interface that makes it easy to build, manage and deploy immersive digital spaces An asset library of customisable 3D templates, props and kits Team collaboration tools including the ability to share and partner on projected drafts reports Shopify integration that allows you to import your entire product catalogue into a 3D world Multiplayer capabilities to enable social interactivity such as video and audio chat Media streaming including the ability to upload videos Collection of customisable avatars Analytics dashboard to measure performance 'Bringing Infinite Reality's software and services to Google Cloud Marketplace will help customers quickly deploy, manage, and grow the solution on Google Cloud's trusted, global infrastructure', said Dai Vu, Managing Director, Marketplace & ISV GTM Programs at Google Cloud. 'Infinite Reality can now securely scale and support customers on their digital transformation journeys'. The global immersive technology market size is predicted to reach nearly $13 trillion by 2030, according to Citi Research. In January 2025, Infinite Reality announced the closing of a $3 billion funding round, validating its vision for the next generation of the internet and marking a defining moment in the immersive technology sector. To access Infinite Reality on Google Cloud Marketplace, visit here Image Credit: Infinite Reality
Tahawul Tech
27-03-2025
- Business
- Tahawul Tech
Infinite Reality acquires iconic music service Napster
Infinite Reality™ (iR), an innovation company powering the next generation of digital media and ecommerce through extended reality (XR), artificial intelligence (AI), and other immersive technologies, announced the company has entered into a definitive agreement to acquire the iconic online music brand Napster for $207 million. Napster, a fully-licensed independent music service, delivers over 110 million high fidelity tracks from the top artists in the world to its loyal global subscriber base. Over the past two decades Napster has paid over $1 billion to artists and songwriters worldwide, establishing itself as a cornerstone of the music streaming industry and the longest operating digital music service. Infinite Reality plans to transform Napster beyond streaming into a social and interactive music platform, leveraging its immersive technology and audience network of digitally native fans. This includes the millions engaged with iR's entertainment assets, such as the Drone Racing League (DRL) and top esports organisations competing in titles like Call of Duty and League of Legends. The newly-reimagined Napster will differentiate itself from competitors by serving as a social music platform that prioritizes active fan engagement over passive listening, allowing artists to connect with, own, and monetise the relationship with their fans. Through this acquisition, Napster and Infinite Reality plan to offer artists the tools to: Create branded 3D virtual spaces where fans can enjoy virtual concerts, social listening parties, and other immersive and community-based experiences Sell both physical and virtual merchandise, exclusive digital content, and event tickets Leverage AI-powered customer service, sales, and community management agents for greater personalization Access enhanced analytics dashboards to better understand fan behaviour Integrate gamification to increase fan engagement and loyalty Leverage iR's audience network — including DRL and top esports teams — to seamlessly cross-promote and bridge fan communities Offer brands innovative sponsorships that connect with millions of young, digitally savvy consumers 'By acquiring Napster, we're paving a path to a brighter future for artists, fans, and the music industry at large', said John Acunto, Co-Founder and CEO of Infinite Reality. 'This strategic move aligns with Infinite Reality's vision to lead an internet industry shift from a flat 2D clickable web to a 3D conversational one – giving all creators modern tools to better engage, monetise, and measure their audiences. I firmly believe that the artist-fan relationship is evolving, with fans craving hyper-personalised, intimate access to their favourite artists, while artists are searching for innovative ways to deepen connections with fans, and access new streams of revenue. We're creating the ultimate music platform where artists can thrive in the next wave of digital disruption'. As part of this acquisition, Napster CEO Jon Vlassopulos will continue as CEO of Napster, and will take on a broader role for iR globally. Appointed CEO of Napster in 2022, Vlassopulos oversaw the restructuring of the company and led its evolution into new business areas, driving innovation in artist-fan engagement and next-generation immersive music experiences. Previously, he served as Vice President and Global Head of Music at Roblox, where he pioneered immersive experiences for leading artists and brands that reached over 100 million fans, driving tens of millions of dollars of net new revenue for the music industry. Vlassopulos started his career as an executive at BMG and invested in the original Napster when he was at Bertelsmann. A seasoned entrepreneur, executive, and investor, he has a track record of delivering industry firsts that sit at the intersection of technology, music, gaming, entertainment, and marketing. 'Napster revolutionized digital music in the nineties, and now, with Infinite Reality, we're ready to do it again. The internet has evolved from desktop to mobile, from mobile to social, and now we are entering the immersive era. Yet, music streaming has remained largely the same. It's time to reimagine what's possible,' said Jon Vlassopulos, CEO of Napster. 'Imagine stepping into a virtual venue to watch an exclusive show with friends, chat with your favourite artist in their own virtual hangout as they drop their new single, and be able to directly buy their exclusive digital and physical merch. With Infinite Reality's expertise in immersive 3D technology, we will transform Napster into a next-generation platform where fans don't just listen on their own—they experience music in entirely new ways. This isn't just a new chapter for Napster, it's the beginning of a more interactive and social music experience for the next era of the internet'. 'As we think about leading a sectoral shift from 2D web to 3D web, no other community is more critical than creators who are always at the forefront of leveraging innovation to express themselves and disrupt legacy systems', said Amish Shah, Chief Business Officer of Infinite Reality. 'The endurance of the Napster brand stands as a testament to its resilience, and we are honoured to build upon its pioneering spirit and unparalleled expertise in the music industry. We can think of no better use case for our technology than putting it in the hands of music artists who are constantly pushing the boundaries of what's possible'. Founded in 1999, Napster forever changed the music industry with its peer-to-peer file sharing technology, giving fans their first access to digital music and digital music communities. After being acquired by Rhapsody, the first legal music streaming service licensed by all the recognized major record labels, Napster evolved into a leading independent digital music service, with access to more than 110 million tracks, available in 34 countries. Together, Infinite Reality and Napster plan to evolve the brand even further, becoming the leading immersive music platform for artists, fans, and curators. Image Credit: Napster
