LOS ANGELES, (CelebrityAccess) — Concert streamer LiveXLive Media, Inc. announced today that it has signed a deal to acquire Courtside Group, Inc., the parent company of podcast platform PodcastOne.
The all-stock deal is valued at $18.1 million and will see LiveXLive acquire 100% of the equity interests of Courtside Group, Inc. and issue to stockholders of PodcastOne approximately 5.45 million restricted shares of LiveXLive’s common stock based on LiveXLive’s share price at the close of trading on May 7th.
The boards of directors of each of LiveXLive and Courtside Group, Inc. have approved the transaction, and expect to close the transaction by June 2020.
Podcasts have become an increasingly important source of revenue for digital streaming platforms in recent years and PodcastOne platforms some of the biggest names in the industry, with a library of more than 300 shows that include dam Carolla, A&E’s Cold Case Files, Steve Austin, Shaquille O’Neal, Tip “T.I.” Harris, Dr. Drew, Heather and Terry Dubrow, Chael Sonnen, Kaitlyn Bristowe, LadyGang, Mike Tyson, Rich Eisen, Spencer and Heidi Pratt.
In total, PodcastOne reports more about 2.1 billion downloads annually with creators generating about 350 albums per week.
The acquisition will provide LiveXLive a ready-made entry point into the podcast industry, providing the streaming platform diversity of content apart from their traditional business of live-streaming concerts and music festuivals.
“We’re excited to expand our business into the fast-growing podcast category, complementing our music platform of streaming audio, on-demand video and live event performances. The acquisition will add to and diversify our revenue with a strong advertising component. Once acquired and integrated, we will have 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,” commented Robert Ellin, the Chairman and CEO of LiveXLive.