The concert promoters have snapped up a controlling stake in the brothers' streaming company, which launched in 2017 as an artist VIP company.
Veeps is the first major acquisition for Live Nation since the beginning of the pandemic, according to Billboard.
The Maddens and co-founders Sherry Saeedi and Kyle Heller will continue to run Veeps.
Confirming the acquisition, Michael Rapino, the president and chief executive of Live Nation, tells Billboard, "Live streaming is a great complement to our core business, and essentially gives any show an unlimited capacity."
"Looking to the future, livestreams will continue to unlock access for fans - whether they are tuning into a sold out show in their hometown, or watching their favourite artist play in a city halfway around the world. The most critical element of livestreaming is the artist on stage, and with Live Nation's unmatched inventory feeding into Veeps, together we will help fans enjoy more live music than ever before."
Joel Madden adds, "We're very happy to be joining a company that is such a big supporter of artists and artist-led businesses. This partnership is a demonstration that premium, ticketed livestreams have earned themselves a permanent place in the verticals of every artist business."
Brother Benji adds, "We've always believed that taking an art-first approach to live stream shows helps artists create the kind of performance they can be proud of, and an experience that fans love. This means applying as much creativity and thoughtfulness as you would with any in-person show.
"We will only see this platform get more innovative as concerts return and we layer into shows in even more ways. We're incredibly grateful for our team who continues to hustle non-stop and we look forward to amazing things ahead alongside Live Nation."