LiveOne's PodcastOne Intends To Acquire Fantasy Guru

LiveOne Inc LVO inks a binding letter of intent to acquire Guru Fantasy Sports, Inc., in an all-stock transaction with consideration payable in shares of PodcastOne. 

Sellers of Fantasy Guru would receive shares of PodcastOne's restricted common stock, subject to PodcastOne becoming a publicly traded company. The purchase price will include 500-800K shares in PodcastOne at $8. 

LiveOne intends to integrate Fantasy Guru as part of PodcastOne's business, entering a booming fantasy sports market valued at over $20 billion.

The transaction Synergies will add 24K subscribers at $8+ ARPU; it is expected to be immediately accretive, adding $2.5+ million in revenues and over $600k in EBITDA.

Fantasy Guru is a fantasy football fantasy sports service, delivering innovative strategies, predictions, and player projections using web-based tools since 1995. 

"Fantasy Guru brings highly attractive subscription revenue which we plan to grow and augment with additional products and services. There are enormous revenue synergy opportunities associated with this transaction," commented co-founder of PodcastOne Kit Gray.

The transaction is expected to be accretive to both revenue and cash flow of PodcastOne immediately upon closing, expected to occur during the third quarter of the calendar year 2023.

Price Action: LVO shares are trading lower by 1.27% at $1.56 on the last check Monday.