Deal Is Expected to Value Slacker at $160 Million Pre-Money
Slacker Surges to Over 3 Million Members Adding Over 225K Since January 1, 2023*
Byron Roth Expected to Remain on the Post-Merger Company’s Board of Directors
LOS ANGELES, CA , April 28, 2023 (GLOBE NEWSWIRE) — via NewMediaWire- LiveOne (Nasdaq: LVO), an award-winning, creator-first music, entertainment, and technology platform, and Roth CH Acquisition V Co. (NASDAQ:ROCL, ROCLU, ROCLW))))), a special purpose acquisition company, announced today that they have entered into a letter of intent to merge LiveOne’s wholly-owned subsidiary, Slacker, Inc., with Roth CH Acquisition V Co. at a pre money valuation of $160 million, subject to completion of diligence and definitive documentation.
After the contemplated merger, LiveOne is expected to own the substantial majority of post-merger company and it is expected that Slacker will continue its existing business relationship with LiveOne and LiveOne’s PodcastOne in the creation and distribution of award-winning content. The parties currently anticipate being in a position to close the proposed merger in the fourth calendar quarter of 2023, subject to various conditions and approvals and completion of diligence and definitive documentation.
Slacker Radio is a membership music streaming service that was launched in 2007 and is known for its personalized radio stations, expertly crafted by music experts and DJs, as well as its large music library which includes millions of songs across all genres. It also includes podcasts from PodcastOne, livestreamed video and on-demand programming, and livestreamed festivals, concerts, and pay-per-view (“PPV”) events. Slacker currently has a paid and free ad-supported membership base of more than 3 million*.
Roth CH Acquisition V Co. is led by executives and affiliates of Roth Capital Partners and Craig-Hallum Capital Group, two leading small-cap growth investment banks. Subsequent to the closing of the proposed merger, Byron Roth, Co-Chairman and Co-CEO of Roth CH Acquisition V Co., currently plans to remain a member of the post-merger company’s board of directors.
Robert Ellin, Chairman and CEO of LiveOne and CEO of Slacker, commented, “We believe this combination will represent an exciting opportunity for Slacker to scale more rapidly its fast-growing music subscription service both geographically and through additional B-to-B white label agreements, particularly with automotive OEMs.”
Byron Roth stated, “We are enthused to enter into this agreement with Slacker and look forward to working with LiveOne to complete this merger. We believe the size and growth of the streaming music business makes this a compelling deal for our shareholders.”
The LOI is non-binding and the contemplated merger is subject to execution of definitive documentation, regulatory approval, approval of Roth CH Acquisition V Co.’s shareholders to extend the time for the company to consummate a business combination, approval of Roth CH Acquisition V Co.’s shareholders of the proposed merger with Slacker, and a minimum cash proceeds to be raised and/or retained by Roth CH Acquisition V Co. in connection with the closing of the proposed merger. There can be no assurance that LiveOne’s and Roth CH Acquisition V Co.’s efforts will result in the consummation of the proposed merger.
