LiveOne, Inc. (LVO) announced a multi‑year extension of its global licensing partnership with Merlin, the world’s leading distributor for independent music labels. The new agreement gives LiveOne access to more than 25 million songs from Merlin’s catalog and extends the Digital Music Services Agreement through November 30, 2026, with an option to extend to November 30, 2027.
The extension includes a royalty‑to‑equity conversion that will see LiveOne issue 500,000 common shares at $7.50 per share to Merlin in exchange for $3.75 million of current and future royalties. Management expects the deal to generate over $2 million in cash flow and to have a positive impact on adjusted EBITDA, building on LiveOne’s Q3 fiscal 2026 results of $20.3 million in revenue, $1.6 million in adjusted EBITDA, and a $4.1 million net loss.
LiveOne’s leadership views the expanded catalog as a key lever for its streaming strategy. The company has been reducing its workforce from 350 to 88 employees and pivoting toward AI‑driven operations. By securing a larger music library, LiveOne aims to enhance its streaming offerings, attract more subscribers, and strengthen its competitive position against larger platforms.
CEO Robert Ellin said, “Independent music is one of the most powerful drivers of discovery across streaming platforms. This extension with Merlin not only strengthens our long‑standing relationship but also improves our balance sheet while positioning LiveOne to significantly expand our catalog and deliver even more value to artists and fans.”
Analysts have maintained a “hold” consensus on LiveOne, and the deal aligns with investor interests in catalog expansion and balance‑sheet improvement, though no immediate market reaction data is available.
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