Galloway Capital invests in ‘deeply undervalued’ player in fast-growing podcast space

The Adam Carolla Show from PodcastOne

PodcastOne, the LA-based outfit behind video podcasts such The Adam Carolla Show, has received investment from Galloway Capital Partners in return for a 3.15% stake in the company.

Miami-based Galloway Capital Partners said it believes PodcastOne is “significantly undervalued and well-positioned for merger or acquisition” as it announced the deal, financial details of which were not disclosed.

Bruce Galloway, chief investment officer at Galloway Capital Partners, urged PodcastOne’s board to tap up an investment bank or strategic advisor to “evaluate options to maximise shareholder value, including a sale, merger, or other strategic transactions” as podcasts consumption skyrockets.

The podcast publisher and sales network was founded over a decade ago and produces a variety of podcasts covering news, comedy, interviews, true crime, sports and culture on its own platform as well as Apple Podcasts, Spotify, iHeart, Amazon and YouTube.

Its slate includes shows such as The Jordan Harbinger Show, Karma & Chaos, The Adam Carolla Show, Stassi, Off The Vine with Kaitlyn Bristowe, LadyGang, Gals on the Go, The Prosecutors, Court Junkie, Pop Apologists and Varnamtown.

It recently partnered with leading dating coach and matchmaker Blaine Anderson to launch the weekly podcast Help Me, I’m Single on platforms such as YouTube.

The investment comes as companies such as Fox Entertainment and Netflix make major moves in the podcast space, while companies such as Platform and Goalhanger in the UK grow their video podcast slates.

“Based on our analysis, PodcastOne’s shares are deeply undervalued and continue to trade at a material discount to both revenues and intrinsic value,” said Galloway.

“In the past year, multiple peers in the sector have been acquired at valuations reaching up to 10x revenues – clear evidence of the substantial value ascribed to comparable companies.

“PodcastOne operates in one of the fastest-growing segments of the media industry and is one of the most visible and strategically positioned companies in the space. The current market price does not remotely reflect this value.”