Beverly Hills-based PodcastOne to go public

0

Los Angeles-based live streaming company LiveOne announced on Friday that it will spin off its podcasting division, PodcastOne, into a separate, publicly traded company.

Executives said the public offering would increase shareholder value and raise cash to fund further podcast acquisitions.

LiveOne acquired PodcastOne in 2020 when it was valued at $18.1 million. PodcastOne is now valued at $60 million, the company announced on Friday.

The Beverly Hills-based company has 42 employees and distributes more than 350 weekly episodes, including podcasts featuring radio personality Adam Carolla and Kaitlyn Bristowe, who starred in “The Bachelorette.”

“PodcastOne has been a terrific addition to LiveOne since our acquisition in 2020, and we believe the market value of our shares significantly understates the sum of our parts, which includes our PodcastOne subsidiary,” LiveOne’s chief executive said. , Robert Ellin, in a press release. .

The announcement comes amid growing industry consolidation, as companies entrenched in streaming and radio have bought independent podcast outlets such as Gimlet and the Ringer (acquired by Spotify) and Wondery (acquired by Amazon). music).

“We believe that by trading as a separate public company, PodcastOne will have the opportunity to access public capital markets and be better positioned to acquire podcast platforms and attract important podcast talent,” PocastOne President Kit Gray said in the statement.

PodcastOne said it has more than 2.1 billion downloads per year and is expected to generate more than $9 million in revenue for the quarter that ended June 30.

The spin-off should take place before the end of the year.

LiveOne traded at $1.29 on the Nasdaq on Friday, up about 7%.

Share.

Comments are closed.