Galloway Capital Partners, LLC has filed an amended Schedule 13D, revealing an increase in its ownership of PodcastOne, Inc. to 893,000 shares, representing approximately 2.95% of the company's outstanding shares. The firm is urging PodcastOne's management to consider strategic options, including a potential sale, to enhance shareholder value.
This move is significant as it underscores the increasing pressure from investors for companies in the tech and media sectors to optimize their market valuations. Galloway Capital's letter to PodcastOne's Executive Chairman, Robert Ellin, highlights a belief that the company is undervalued and trading at a significant discount compared to its revenue potential.
Background
Galloway Capital Partners, LLC is a limited liability company incorporated in Delaware. The firm focuses on investment opportunities and has been actively managing its portfolio in the tech and media sectors. PodcastOne, Inc., previously known as Courtside Group, Inc., operates in the services-computer programming and data processing industry, specifically in the podcasting space. The company has been publicly traded for about three years and has seen growth in revenue and audience engagement.
What the Filing Says
In the recent filing dated October 27, 2026, Galloway Capital stated, "We believe the Company’s public market valuation substantially understates the value of its business and its potential to a strategic acquirer." The firm acquired its shares through open market purchases over the past three years, with an average purchase price of approximately $2.06 per share.
Impact
This development may affect PodcastOne's management and board as they consider Galloway's recommendations. The letter from Galloway Capital emphasizes the need for a strategic review to explore options that could lead to a merger or acquisition, potentially reshaping the company's future. Other shareholders may also take note of Galloway's actions, prompting them to reassess their investments in PodcastOne and similar firms.
What's Next
The filing does not say what happens next. However, Galloway Capital has requested a prompt response from PodcastOne's board regarding their proposed next steps, indicating that discussions may be forthcoming.