LiveOne's "Battle of the Border" Streaming: A Strategic Play to Diversify Revenue and Elevate Valuation Multiples

The global streaming of BKFC's “Battle of the Border” on June 18, 2025, marks a pivotal moment for LiveOne (LVO). By partnering with BKFC Ice Wars to broadcast a high-octane USA vs. Canada combat event, LiveOne is leveraging its platform to penetrate new geographic markets while diversifying its revenue streams beyond its core automotive and podcast businesses. This move underscores a broader strategy to expand its global footprint and justify its valuation through incremental growth.

Geo-Strategic Play: Tapping into North America's Passion for Combat Sports

The “Battle of the Border” is not merely a one-off event but a deliberate step into the lucrative North American combat sports market. The event, split between Michigan (U.S.) and Alberta (Canada), targets regions with strong cultural ties and a history of competitive spirit. By hosting the fights in major casinos—venues already primed for entertainment—LiveOne secures immediate access to high-traffic audiences while streaming the spectacle globally. This dual approach—physical venue engagement and digital distribution—maximizes reach and creates a blueprint for future international events.

The geographic focus aligns with LiveOne's stated goal of expanding beyond its core U.S. markets. The company's CEO, Rob Ellin, emphasized the partnership's potential to tap into BKFC's “200 million global viewers” and 5 billion fan engagements. While these figures are aspirational, the event's unique selling point—a hockey-derived combat format without the sport's traditional elements—could carve out a niche audience.

Revenue Diversification: Moving Beyond Tesla and Podcasts

LiveOne's financial health has long relied on its Tesla partnership, which now accounts for 45% of its user base. While this relationship remains a cash cow—driving a 130% surge in direct-billed subscribers since late 2024—the company risks overexposure to automotive market volatility. The BKFC collaboration introduces a new revenue lever: live event streaming.

The immediate financial upside includes:
- Subscription growth: The event's high-adrenaline format could attract new paying subscribers to LiveOne's platforms.
- Advertising revenue: Sponsors drawn to the event's transnational appeal (e.g., sports brands, beverage companies) could boost ad sales.
- Global syndication: LiveOne's global reach (220+ countries) allows it to monetize the event repeatedly through reruns or pay-per-view.

The partnership also strengthens LiveOne's B2B pipeline, which now includes over 75 deals under negotiation. BKFC's audience expansion could serve as a case study for potential corporate clients seeking to leverage LiveOne's distribution network.

Valuation Multiples: Can This Justify LVO's Stock?

LiveOne's current valuation faces skepticism, trading at just $0.50 per share—far below Nasdaq's $1 delisting threshold. However, strategic moves like the BKFC partnership could help reposition the stock. Key metrics to watch:

1. Subscriber Growth:
2. Tesla has driven LiveOne's user base to 285,000 weekly active users, but the BKFC event could add 5–10% more subscribers in Q2.

4. Revenue Diversification:

5. LiveOne's audio division now accounts for 97% of revenue, but event streaming could carve out a low-single-digit margin in 2025.

7. Valuation Multiple Expansion:

8. LiveOne trades at a 0.1x revenue multiple, far below peers like SiriusXM (1.2x) or Spotify (1.5x). A successful BKFC rollout could narrow this gap if it proves scalable.

Risks and Challenges

• Execution Risk: LiveOne must ensure seamless global streaming to avoid technical glitches that could damage its reputation.
• Market Saturation: Combat sports streaming is crowded, with competitors like ESPN+ and UFC already dominating the space.
• Regulatory Hurdles: BKFC's “ice fighting” format, while novel, may face scrutiny in certain jurisdictions.

Investment Thesis

LiveOne's BKFC partnership is a high-risk, high-reward play. The company's stock is deeply undervalued, and the event offers a potential catalyst to re-engage investors. However, success hinges on:
1. Demonstrating incremental revenue from the event within 90 days.
2. Showing subscriber retention post-event to justify valuation expansion.
3. Delivering on its $12 million share repurchase program to stabilize its stock price.

For investors, LVO presents an aggressive growth bet. Those willing to take on risk might consider a position ahead of the event, especially if the stock dips further. However, the company must execute flawlessly to avoid a valuation death spiral.

Final Take: LiveOne's pivot into combat sports streaming is a bold move to diversify revenue and prove its global reach. While risks abound, the partnership could be the first step toward a valuation reset—if the company can turn spectacle into sustained growth.

Disclosure: This article is for informational purposes only and should not be construed as personalized financial advice. Always conduct your own research before making investment decisions.