LiveXLive Completes Acquisition of 'PodcastOne'
PodcastOne, which recorded revenue of $27.5 million in calendar 2019, will operate as a wholly-owned subsidiary of LiveXLive.
LOS ANGELES, July 1, 2020 /PRNewswire/ -- LiveXLive Media, Inc. (NASDAQ: LIVX) ("LiveXLive"), a global platform for live stream and on-demand audio, video and podcast content in music, comedy, and pop culture, announced today that it has completed the acquisition of PodcastOne, a leading subscription and advertiser-supported podcast network home to popular and star-studded podcasts across top genres including sports, comedy, celebrity culture and entertainment, in an all-stock deal.
PodcastOne, which recorded revenue of $27.5 million in calendar 2019, will operate as a wholly-owned subsidiary of LiveXLive. The acquisition is expected to be accretive and will strengthen LiveXLive's balance sheet as well as diversifying its business model with a significant advertising component.
Coupled with LiveXLive's subscription and streaming platform, the acquisition adds to LiveXLive opportunity to grow its data collection and mining, enabling greater and more effective monetization strategies.
PodcastOne's library generates over 2.1 billion downloads annually, on over 300 podcasts and star-studded shows produced weekly, including "The Adam Carolla Show", "The Big Podcast" with Shaquille O'Neal, A&E's "Cold Case Files", "Hotboxin" with Mike Tyson, "ExpediTIously" with Tip "T.I." Harris and others from "Stone Cold" Steve Austin, Dr. Drew, Heather and Terry Dubrow, Chael Sonnen, Kaitlyn Bristowe, LadyGang, Rich Eisen, Spencer and Heidi Pratt, Autumn Calabrese, Demi Burnett, Gals on the Go, and many more. These shows enhance LiveXLive's existing podcast and audio library which already reaches 849,000 paid subscribers as reported on March 31, 2020.
"With this acquisition, we expand our business into the fast-growing podcast category, complementing our music platform of streaming audio, on-demand video and live event performances. We see a significant opportunity to cross-sell and cross-promote to our respective subscribers, advertisers, and sponsors, as well as provide our collective artists and on-air talent with an expanded platform to increase their social media and online presence," said Robert Ellin, the CEO and Chairman of LiveXLive.
Since announcing plans to acquire PodcastOne in May of this year, the two companies have already partnered on two Vodcast (video podcast) specials with Adam Carolla -- both of which generated record-setting viewership of over 1.1 million live streams per event. LiveXLive has also adapted its flagship news and commentary show LiveZone into a weekly audio podcast format and plans to bring all relevant programming to PodcastOne's audience. The businesses are also exploring programming blocks on LiveXLive's 24/7 linear channels and SmartTV apps on Samsung, Roku, Amazon Fire, Apple TV, with more coming soon.
PodcastOne's founder and Executive Chairman, Norman Pattiz, joins LiveXLive as a significant shareholder and will remain Executive Chairman of PodcastOne. Mr. Pattiz is regarded as a pioneer in the radio industry having founded and built Westwood One into the largest radio network in America.
"We did this deal to stay on the cutting edge of digital content," said Norman Pattiz. "We now offer streaming video to our podcast partners and sponsors in the form of 'Vodcasts'. Our creative teams are collaborating on a variety of new ideas to add to our arsenal of unique and compelling content and events." Mr. Pattiz added, "This is going to be fun!"
LiveXLive's new unique offering of audio streaming, podcasts, live streaming, and on-demand video provides artists and brands with an end-to-end music platform for creating, curating, promoting, and distributing content, while gaining valuable data and insights and new monetization opportunities from their social media followers, viewers and performances. Combined with PodcastOne's advertising and sales force, LiveXLive will amplify its work with brands like Corona, Oculus, TikTok, Well Being Trust, and WhiteClaw.
The acquisition brings LiveXLive into the fast-growing podcast industry. With 32% of Americans listening to podcasts on a monthly basis today and advertising revenue projected to surpass $1 billion by 2021, the acquisition will diversify LiveXLive's revenue and is anticipated to accelerate its path toward profitability.
Under the terms of the acquisition, LiveXLive acquired 100% of the equity interests of Courtside Group, Inc., the owner and operator of PodcastOne, and issued to stockholders of PodcastOne approximately 5.36 million restricted shares of LiveXLive's common stock, which are subject to a 12-month lock-up period and certain trading restrictions thereafter.
LiveXLive is accessible on the web as well as on devices from the car to home to bring music fans the best seat in the house for festivals, concerts and events worldwide, via a curated-by-people audio selection of millions of recorded songs, original programming segments comprised of live performances, podcasts, artist interviews, lifestyle segments, and show pilots. LiveXLive operates a live events business and offers branded entertainment, content development, advertising, merchandising, and live streaming services. LiveXLive has already streamed over 1100 artists since January 1, 2020, as compared to 300 artists in total for calendar year 2019. For more information about LiveXLive, please visit www.livexlive.com.
About PodcastOne
PodcastOne is a leading advertiser-supported podcast company, offering a 360-degree solution for both content creators and advertisers, including content development, brand integration and distribution. Amassing more than 2.1 billion downloads annually, the network produces 400+ episodes weekly across a stable of hundreds of top podcast programs, including influencer talent like Adam Carolla, Shaquille O'Neal, Steve Austin, Kaitlyn Bristowe, Tip "T.I." Harris, Demi Burnett, Autumn Calabrese, Spencer and Heidi Pratt, Heather and Terry Dubrow, LadyGang, Trisha Paytas, Dr. Drew, Chael Sonnen, Rich Eisen, and hundreds more. PodcastOne is the brainchild of Radio Hall of Famer, Norman Pattiz, also the founder of Network Radio-giant, Westwood One. For more information, please visit www.podcastone.com.
About LiveXLive Media, Inc.
Headquartered in Los Angeles, California, LiveXLive Media, Inc. (NASDAQ: LIVX) (the "Company") (pronounced Live "by" Live) is a global platform for live stream and on-demand audio, video and podcast content in music, comedy, and pop culture. LiveXLive, which has streamed over 1000 events in 2020, has become a go-to partner for the world's top artists and celebrity voices as well as music festivals concerts, including Rock in Rio, EDC Las Vegas, and many others. In April 2020, LiveXLive produced its first 48-hour music festival called "Music Lives" with tremendous success as it earned over 50 million views and over 5 billion views for #musiclives on TikTok on 100+ performances. LiveXLive's library of global events, video-audio podcasts and original shows are also available on Amazon, Apple TV, Roku and Samsung TVs in addition to its own app, destination site and social channels. For more information, visit www.livexlive.com and follow LiveXLive on Facebook, Instagram, TikTok, Twitter at @livexlive, and YouTube.
Forward-Looking Statements
All statements other than statements of historical facts contained in this press release are "forward-looking statements," which may often, but not always, be identified by the use of such words as "may," "might," "will," "will likely result," "would," "should," "estimate," "plan," "project," "forecast," "intend," "expect," "anticipate," "believe," "seek," "continue," "target" or the negative of such terms or other similar expressions. These statements involve known and unknown risks, uncertainties and other factors, which may cause actual results, performance or achievements to differ materially from those expressed or implied by such statements, including: the Company's reliance on one key customer for a substantial percentage of its revenue; the Company's ability to consummate the proposed acquisition of PodcastOne and the timing of the closing of the proposed transaction, including the risks that a condition to closing would not be satisfied within the expected timeframe or at all or that the closing of the proposed acquisition will not occur; the Company's ability to attract, maintain and increase the number of its users and paid subscribers; the Company identifying, acquiring, securing and developing content; the Company's ability to maintain compliance with certain financial and other covenants; the Company successfully implementing its growth strategy, including relating to its technology platforms and applications; management's relationships with industry stakeholders; the effects of the global Covid-19 pandemic; changes in economic conditions; competition; and other risks, uncertainties and factors including, but not limited to, those described in the Company's Annual Report on Form 10-K for the fiscal year ended March 31, 2020, filed with the U.S. Securities and Exchange Commission (the "SEC") on June 26, 2020, and in the Company's other filings and submissions with the SEC. These forward-looking statements speak only as of the date hereof and the Company disclaims any obligations to update these statements, except as may be required by law. The Company intends that all forward-looking statements be subject to the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995.
Press Contact:
Factory PR
212.941- 9394
[email protected]
LiveXLive IR Contact:
310.529.2500
[email protected]
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SOURCE LiveXLive Media, Inc.
