LiveOne (NASDAQ:LVO), the music and entertainment technology platform, announced on Tuesday a multi-year extension of its global licensing partnership with Merlin, the preeminent digital rights solicitor for the independent music sector.
The agreement ensures LiveOne’s continued access to a vast catalog of over 25 million songs from the world’s leading independent labels and distributors.
A key component of the restructured deal is the conversion of up to $3.75 million in current and future royalty obligations into LiveOne common stock.
The equity swap is priced at $7.50 per share, a move designed to align the interests of independent rightsholders with the platform’s long-term growth.
By settling these liabilities through equity rather than cash, LiveOne expects to see an immediate improvement in its balance sheet and a projected increase of more than $2 million in annual cash flow and adjusted EBITDA.
The partnership provides stability for LiveOne’s Slacker Radio and other streaming subsidiaries through at least late 2026, with options for further extension.
For Merlin’s membership, which represents roughly 15% of the global recorded music market, the deal offers a stake in the platform's distribution infrastructure while ensuring their artists remain accessible to LiveOne’s growing subscriber base.