LiveOne (Nasdaq: LVO) Explores Strategic Options After $207M Napster Sale

Rhea-AI Summary

LiveOne (LVO) has announced it's exploring strategic options following the $207 million Napster sale. The company, currently valued at a $72.1 million market cap, expects Fiscal Year 2025 revenues of over $112 million, with its Audio Division projecting $108 million+ in revenues and $16 million+ in Adjusted EBITDA.

Key highlights include:

• Top 10 DSP ranking
• $6 million remaining in share buyback program
• B2B partnerships exceeding $50 million
• Active inbound M&A opportunities for LiveOne and its subsidiaries Slacker Radio and PodcastOne

CEO Robert Ellin states the company's current stock valuation doesn't reflect its true value, citing the recent Napster transaction as evidence of market undervaluation. The strategic review aims to enhance shareholder value amid growing global interest in the company and its subsidiaries.

Positive

• Napster sale completed for $207M, demonstrating significant asset value realization
• Expected FY2025 revenues of $112M+ with Audio Division contributing $108M+
• Audio Division projecting $16M+ in Adjusted EBITDA
• B2B partnerships valued at over $50 million
• Active $6M share buyback program remaining
• Multiple inbound M&A opportunities for LiveOne and subsidiaries

Negative

• Current market cap of $72.1M suggests significant undervaluation relative to assets
• Management acknowledges stock price does not reflect company's intrinsic value

Insights

Financial Analyst

LiveOne's strategic review, $207M Napster sale, and projected $112M+ FY2025 revenue signal significant upside potential against $72.1M market cap.

LiveOne's announcement contains several critical financial indicators worth examining. The company has a current market cap of $72.1 million yet recently completed a Napster sale for $207 million - a transaction nearly 3x larger than their entire market capitalization. This valuation disconnect is precisely why management is now exploring strategic alternatives.

The company's forward-looking financials project FY2025 revenues of $112M+, with their Audio Division expected to generate $108M+ in revenue and $16M+ in Adjusted EBITDA (a non-GAAP metric). These projections, if achieved, would represent substantial performance relative to the current valuation.

Other notable financial elements include an active share buyback program with $6 million remaining, suggesting management's confidence in the company's underlying value. Their B2B partnerships valued at $50+ million represent significant business relationships that could provide recurring revenue streams.

The disclosure of inbound M&A interest for both LiveOne and its subsidiaries Slacker Radio and PodcastOne (Nasdaq: PODC) indicates external validation of asset value that the market may not be fully recognizing. This strategic review process typically involves engaging investment bankers to evaluate options ranging from full sale to partial divestitures, potentially unlocking shareholder value through transaction premiums.

• Market Cap: $72.1 million
• Ranked Top 10 DSP
• Fiscal Year 2025 Expected Revenues: $112M+, Audio Division: Revenues $108M+ and Adjusted EBITDA* $16M+
• Share Buyback: $6 million remaining
• B2B Partnerships: Over $50 million
• Inbound M&A opportunities for LiveOne (Nasdaq: LVO) and subsidiaries Slacker Radio and PodcastOne (Nasdaq: PODC)

LOS ANGELES, April 30, 2025 (GLOBE NEWSWIRE) -- LiveOne (Nasdaq: LVO), an award-winning, creator-first, music, entertainment, and technology platform, announced today that it is exploring strategic options following the $207M Napster sale.

Robert Ellin, Chairman and CEO, commented, “In evaluating the market landscape, we firmly believe that our current stock valuation fails to accurately reflect the company's intrinsic value. Recent transactions, such as the sale of Napster for $207 million, reinforce our conviction that our assets and growth prospects are significantly undervalued. Furthermore, given the global interest in the company and our subsidiaries, we are initiating a strategic review to explore alternatives that enhance shareholder value.”

About LiveOne
Headquartered in Los Angeles, CA, LiveOne (Nasdaq: LVO) is an award-winning, creator-first, music, entertainment, and technology platform focused on delivering premium experiences and content worldwide through memberships and live and virtual events. LiveOne's subsidiaries include Slacker, PodcastOne (Nasdaq: PODC), PPVOne, CPS, LiveXLive, DayOne Music Publishing, Drumify and Splitmind. LiveOne is available on iOS, Android, Roku, Apple TV, Spotify, Samsung, Amazon Fire, Android TV, and through STIRR's OTT applications. For more information, visit liveone.com and follow us on Facebook, Instagram, TikTok, YouTube and Twitter at @liveone. For more investor information, please visit ir.liveone.com.

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: LiveOne’s reliance on its largest OEM customer for a substantial percentage of its revenue; LiveOne’s ability to consummate any proposed financing, acquisition, spin-out, special dividend, merger, distribution or transaction, the timing of the consummation of any such proposed event, including the risks that a condition to the consummation of any such event would not be satisfied within the expected timeframe or at all, or that the consummation of any proposed financing, acquisition, spin-out, merger, special dividend, distribution or transaction will not occur or whether any such event will enhance shareholder value; LiveOne’s ability to continue as a going concern; LiveOne’s ability to attract, maintain and increase the number of its users and paid members; LiveOne identifying, acquiring, securing and developing content; LiveOne’s intent to repurchase shares of its and/or PodcastOne’s common stock from time to time under LiveOne’s announced stock repurchase program and the timing, price, and quantity of repurchases, if any, under the program; LiveOne’s ability to maintain compliance with certain financial and other covenants; LiveOne successfully implementing its growth strategy, including relating to its technology platforms and applications; management’s relationships with industry stakeholders; LiveOne’s ability to extend and/or refinance its indebtedness and/or repay its indebtedness when due; uncertain and unfavorable outcomes in legal proceedings and/or LiveOne’s ability to pay any amounts due in connection with any such legal proceedings; changes in economic conditions; competition; risks and uncertainties applicable to the businesses of LiveOne’s subsidiaries; and other risks, uncertainties and factors including, but not limited to, those described in LiveOne’s Annual Report on Form 10-K for the fiscal year ended March 31, 2024, filed with the U.S. Securities and Exchange Commission (the “SEC”) on July 1, 2024, Quarterly Report on Form 10-Q for the quarter ended December 31, 2024, filed with SEC on February 14, 2025, and in LiveOne’s other filings and submissions with the SEC. These forward-looking statements speak only as of the date hereof, and LiveOne disclaims any obligation to update these statements, except as may be required by law. LiveOne intends that all forward-looking statements be subject to the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995.

* About Non-GAAP Financial Measures
To supplement our consolidated financial statements, which are prepared and presented in accordance with the accounting principles generally accepted in the United States of America ("GAAP"), we present Contribution Margin (Loss) and Adjusted Earnings Before Interest Tax Depreciation and Amortization ("Adjusted EBITDA"), which are non-GAAP financial measures, as measures of our performance. The presentation of these non-GAAP financial measures is not intended to be considered in isolation from, or as a substitute for, or superior to, operating loss and or net income (loss) or any other performance measures derived in accordance with GAAP or as an alternative to net cash provided by operating activities or any other measures of our cash flows or liquidity.

We use Contribution Margin (Loss) and Adjusted EBITDA to evaluate the performance of our operating segments. We believe that information about these non-GAAP financial measures assists investors by allowing them to evaluate changes in the operating results of our business separate from non-operational factors that affect operating income (loss) and net income (loss), thus providing insights into both operations and the other factors that affect reported results. Adjusted EBITDA is not calculated or presented in accordance with GAAP. A limitation of the use of Adjusted EBITDA as a performance measure is that it does not reflect the periodic costs of certain amortizing assets used in generating revenue in our business. Accordingly, Adjusted EBITDA should be considered in addition to, and not as a substitute for operating income (loss), net income (loss), and other measures of financial performance reported in accordance with GAAP. Furthermore, this measure may vary among other companies; thus, Adjusted EBITDA as presented herein may not be comparable to similarly titled measures of other companies.

Contribution Margin (Loss) is defined as Revenue less Cost of Sales. Adjusted EBITDA is defined as earnings before interest, other (income) expense, income tax expense, depreciation and amortization and before (a) non-cash GAAP purchase accounting adjustments for certain deferred revenue and costs, (b) legal, accounting and other professional fees directly attributable to acquisition activity, (c) employee severance payments and third party professional fees directly attributable to acquisition or corporate realignment activities, (d) certain non-recurring expenses associated with legal settlements or reserves for legal settlements in the period that pertain to historical matters that existed at acquired companies prior to their purchase date and a one-time minimum guarantee to effectively terminate a live events distribution agreement post COVID-19, and (e) certain stock-based compensation expense. Management does not consider these costs to be indicative of our core operating results.

With respect to projected full Fiscal 2026 Adjusted EBITDA, a quantitative reconciliation is not available without unreasonable efforts due to the high variability, complexity and low visibility with respect to purchase accounting adjustments, acquisition-related charges and legal settlement reserves excluded from Adjusted EBITDA. We expect that the variability of these items to have a potentially unpredictable, and potentially significant, impact on our future GAAP financial results.

LiveOne Press Contact:

press@liveone.com

Follow LiveOne on social media: Facebook, Instagram, TikTok, YouTube, and Twitter at @liveone.

FAQ

How much did LiveOne (LVO) sell Napster for in 2025?

LiveOne (LVO) sold Napster for $207 million in 2025, which the company indicates significantly exceeds their current market capitalization of $72.1 million.

What is LiveOne's (LVO) remaining share buyback amount in 2025?

LiveOne (LVO) has $6 million remaining in their share buyback program as of April 30, 2025.

What are LiveOne's (LVO) projected revenues for fiscal year 2025?

LiveOne (LVO) expects total revenues of $112M+ for fiscal year 2025, with the Audio Division contributing $108M+ and generating $16M+ in Adjusted EBITDA.

Why is LiveOne (LVO) exploring strategic options after the Napster sale?

LiveOne is exploring strategic options because management believes the current stock valuation doesn't reflect the company's intrinsic value, especially after the $207M Napster sale and considering global interest in the company and its subsidiaries.

What is the value of LiveOne's (LVO) B2B partnerships in 2025?

LiveOne's B2B partnerships are valued at over $50 million as of April 2025.

Which LiveOne (LVO) subsidiaries are receiving M&A interest in 2025?

According to the press release, both Slacker Radio and PodcastOne (Nasdaq: PODC) are receiving inbound M&A opportunities.