Shares of the LiveOne, Inc. (LVO) stock were popping high in the premarket trading session today on December 28, 2021. LVO stock price saw a push of 16.79% to reach $1.60 a share at the time of this writing. The stock was gloomy in the previous trade and went down by 1.44% at closing. Let’s dig in to understand the reason behind this bull.
What’s Happening?
LVO stock became bullish after the acquisition announcement of TraderB2B by LiveOne today. The company announced that it has signed a binding Letter of intent with Trader2B, which is an existing trading platform. LiveOne will get an exclusive license to use and integrate Trader2b’s technology and platform in all music categories. The motive behind this is to gamify LiveOne’s platform and user experience. Moreover, LiveOne will have an exclusive option to buy business or assets and operations of Trader2B within six months of the release of the gamified platform of LiveOne. The proposed 8th acquisition of LVO is subject to customary closing and other conditions.
Both parties under this exclusive license have shown consent to split the revenues of the gamified platform before the completion of the proposed acquisition. LVO shall not be liable for any type of costs in order to operate the gamified platform.
Previous News of LVO stock
In the previous week, LiveOne did announce the implementation of further consolidation and provided updated financial guidance. The company reported more than $14 million in operations and corporate overhead annual cost and expense reductions. The previous consolidation was $5.6 million. The paid subscribers of the company increased by 81,000 to 1,337,000 as of December 15, 2021, from September 30, 2021.
According to the updated financial guidance, the revenues of the LVO stock for FY 2022 are expected to be in the range of $110 million – $112 million with an Adjusted EBITDA of $8 million. The company expects $120 – $140 Million in revenues for FY 2023 with $2 Million – $8 Million in Adjusted EBITDA.
What’s Next?
Due to the surging Omicron cases, a Covid-19 variant, LiveOne has canceled the live music festival Spring “Awakening Excursions: Cancun Awakening”. The company previously scheduled this festival for January 13-17, 2022. Self-Made Knockout, the second iteration of the Social Gloves Franchise has been shifted from Q4 Fiscal 2022 to Q1 Fiscal 2023. Moreover, the company is planning to spin out its PPVOne business as a separate public company. LiveOne intends to distribute a small portion of the equity of the new company to the shareholders of LVO stock by March 31, 2022.
