PodcastOne Faces Shareholder Pressure as Activist Investor Calls for Strategic Review

NEW YORK, NY – November 18, 2025

Galloway Capital Partners, LLC, an investment firm known for its activist approach, has announced a 3.15% stake in PodcastOne, Inc. (Nasdaq: PODC), and is publicly urging the company’s board to explore strategic alternatives, including a potential sale or merger. The move signals a belief that the podcasting platform is currently undervalued and possesses untapped potential in a rapidly evolving audio market.

Industry Consolidation and PodcastOne’s Position

The podcasting industry has experienced significant growth in recent years, attracting investment from major media companies and driving consolidation. While the market continues to expand, achieving sustained profitability remains a challenge for many players. PodcastOne, a subsidiary of LiveOne, Inc. (NASDAQ: LVO), has demonstrated consistent revenue growth, with a record $52.1 million in revenue for fiscal year 2025, a 20% increase from the prior year. However, the company has struggled with profitability, reporting a net loss of $6.17 million in the same period.

“The podcasting space is maturing,” explains one industry analyst. “Growth isn’t guaranteed anymore, and companies need to demonstrate a clear path to profitability. Those that can’t may become attractive acquisition targets.”

Galloway Capital Partners appears to believe PodcastOne falls into this category, arguing that its current valuation does not reflect its inherent value. The firm points to recent acquisitions in the podcasting sector, suggesting that comparable companies have been valued at up to 10x revenue. While the market has cooled somewhat, deals are still being made and multiples are still healthy. The question becomes whether PodcastOne can capitalize on the growth and attract a suitor or restructure to unlock value on its own.

Galloway’s Activist Strategy and PodcastOne’s Shareholder Base

Galloway Capital Partners has a history of taking activist positions in undervalued companies, pushing for strategic changes to unlock shareholder value. Their strategy typically involves identifying companies with strong underlying fundamentals but depressed valuations, and then engaging with management to implement changes such as cost-cutting measures, asset sales, or strategic mergers and acquisitions. The firm's 13D filing with the SEC indicates its intention to actively engage with PodcastOne’s board of directors to explore strategic alternatives.

“They’re not afraid to shake things up,” says a source familiar with Galloway’s investment style. “They believe that sometimes a company needs a catalyst to realize its full potential.”

The shareholder base of PodcastOne is heavily concentrated, with LiveOne, Inc. owning approximately 70.65% of the outstanding shares. This presents both an opportunity and a challenge for Galloway Capital Partners. While LiveOne’s backing provides a degree of stability, any strategic move, including a sale or merger, would likely require its approval. This concentrated ownership could limit Galloway’s leverage, but it also means that a successful push for change could have a significant impact. Institutional investors currently own between 2.87% and 6.16% of the company, and individual retail investors own roughly 18.57% to 21.20%.

Potential Acquirers and Strategic Options

Several companies could be potential acquirers for PodcastOne. Major audio platforms like Spotify, SiriusXM, and Amazon, which has already demonstrated its commitment to the podcasting space through the acquisition of Wondery, are all potential suitors. These companies could benefit from adding PodcastOne’s content library and advertising network to their existing offerings. Traditional media companies looking to expand their presence in the digital audio space could also be interested.

“There’s definitely strategic value in PodcastOne’s content and platform,” notes an industry expert. “The question is, what price are potential acquirers willing to pay?”

Beyond a sale or merger, PodcastOne could also explore other strategic options, such as forging partnerships with other companies, expanding its content offerings, or improving its advertising technology. The company recently extinguished all debt by repaying $3 million in cash and converting $7 million into shares, which is a positive sign. While PodcastOne is currently unprofitable, management expects to achieve positive adjusted EBITDA of $3.0-$5.0 million in fiscal year 2026. However, these efforts could require significant investment and time, and there’s no guarantee of success. The company's focus on scaling its distribution network to include YouTube, Spotify, Apple Podcasts, and iHeartRadio is a logical step, and its partnership with Amazon’s ART19 is projected to generate a minimum of $15 million in guaranteed revenue over three years.