Shares of Eventbrite (NYSE:EB) popped as much as 11% Monday after the company said it had acquired ToneDen. As of 1:40 p.m. EST, the stock was up 6%.
Separately, news that Moderna's COVID-19 vaccine candidate is demonstrating strong effectiveness in early trials is giving investors hope that the live event industry could soon recover.
ToneDen is an automated social-marketing platform that helps connect creators with audiences, including at live events. The start-up was founded in 2015 and has been an existing partner in Eventbrite's app marketplace since 2017.
"Building audiences and engaging ticket buyers is critical to all creators' successes, and Eventbrite believes that creators will rely on solutions that address these needs more than ever once it's safe for in-person events to resume," the company wrote in a blog post. "In fact, 80% of Eventbrite creators surveyed identified marketing as a top need for their business."
Roughly half of paid ticket volumes in 2019 were sold through Eventbrite's self-service channel, making ToneDen a complementary offering with its self-service marketing tools that are designed to help creators reach people. Eventbrite's recovery strategy includes reinforcing its position as a self-service technology platform for event creators.
Financial terms were not disclosed. Eventbrite said the acquisition is effective immediately but will not have a material impact on financial results anytime soon. Eventbrite is scheduled to participate in a tech investing conference hosted by RBC Capital Markets on Wednesday.