LiveOne (NASDAQ: LVO) Inks Multi-Year Music Deals with BMI and ASCAP, Restructures $8M in Payables

Rhea-AI Summary

LiveOne (NASDAQ: LVO) has announced strategic balance sheet restructuring initiatives and partnership updates. The company has secured multi-year music licensing agreements with BMI and ASCAP, while also restructuring $8 million in payables. These developments are expected to enhance the company's ability to finalize over 65 B2B deals currently in their pipeline, supporting their global expansion efforts.

Positive

• Secured multi-year music licensing deals with major rights organizations BMI and ASCAP
• Successfully restructured $8M in payables, improving balance sheet
• Pipeline of 65+ B2B deals indicates strong business development potential
• Strategic partnerships position company for global expansion

Negative

• Existence of $8M in payables requiring restructuring indicates previous financial obligations

Insights

Financial Analyst

The restructuring of $8M in payables and new multi-year music licensing deals with BMI and ASCAP represent significant positive developments for LiveOne's financial health and growth trajectory. The payables restructuring improves working capital management and balance sheet flexibility, while securing long-term agreements with major music rights organizations removes licensing uncertainty and enables smoother B2B deal execution. With 65+ B2B deals in the pipeline, these moves strengthen LiveOne's ability to scale its music streaming platform globally. For a company with a $102M market cap, streamlining $8M in payables is material and could meaningfully improve cash flow dynamics. The strategic partnerships reduce operational friction and licensing costs over the long-term.

Market Research Analyst

These developments significantly enhance LiveOne's competitive positioning in the digital music streaming space. The BMI and ASCAP deals provide important music rights coverage needed to expand the B2B offering globally. The 65+ potential B2B partnerships in the pipeline suggest strong market demand for LiveOne's white-label streaming solutions. The restructured payables and secured music rights create a more stable foundation for scaling these enterprise partnerships. In the competitive streaming landscape, having major music rights locked in through multi-year deals is a key differentiator that could accelerate B2B customer acquisition. This positions LiveOne to potentially capture a larger share of the growing global music streaming market.

Partnerships Boost Management’s Ability to Close 65+ B2B Deals in Pipeline, Fueling Global Expansion

LOS ANGELES, Dec. 11, 2024 (GLOBE NEWSWIRE) -- LiveOne (Nasdaq: LVO), an award-winning, creator-first, music, entertainment, and technology platform, announced today certain balance sheet restructuring initiatives and strategic partnerships update.

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 Radio, 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 September 30, 2024, filed with the November 14, 2024, 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.

LiveOne IR Contact:
Liviakis Financial Communications, Inc.
(415) 389-4670
john@liviakis.com

LiveOne Press Contact:
LiveOne
press@liveone.com

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

FAQ

What are the key terms of LiveOne's (LVO) new music licensing deals with BMI and ASCAP?

LiveOne has secured multi-year music licensing agreements with BMI and ASCAP, though specific terms and conditions were not disclosed in the announcement.

How much debt did LiveOne (LVO) restructure in December 2023?

LiveOne announced the restructuring of $8 million in payables as part of its balance sheet restructuring initiatives.

How many B2B deals does LiveOne (LVO) currently have in its pipeline?

LiveOne reported having over 65 B2B deals currently in their business development pipeline.

What impact will the BMI and ASCAP deals have on LiveOne's (LVO) global expansion?

The music licensing agreements are expected to enhance LiveOne's ability to close their pipeline of 65+ B2B deals, supporting their global expansion strategy.