PodcastOne Recorded Gross Revenue of $27.5 Million in Calendar Year 2019 and Generates Over 2.1 Billion Downloads Annually

Acquisition Brings Norman Pattiz and an Experienced Advertising Sales Team, Established Roster of Major National Brand Advertisers, New Distribution Channels and Podcasts from Adam Carolla, Mike Tyson, Shaquille O’Neal, Tip “T.I.” Harris, and More

Plans to Launch New Vodcast Network Called ‘VodcastOne’

Including PodcastOne, the Company Currently Has Cash and Restricted Cash of Approximately $18.5 Million, Up from $12.4 Million at March 31, 2020

LiveXLive Media, Inc., a global platform for live stream and on-demand audio, video and podcast content in music, comedy, and pop culture, announced 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.

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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.

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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.

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