Can LiveOne’s Slacker Beat the Odds in the Increasingly Wobbly SPAC Market?

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The streaming service must overcome numerous obstacles to complete its SPAC deal — and even if it closes, it likely faces a tough road ahead.

Streaming service Slacker is looking to become the fifth music company to go public by merging with a special purpose acquisition corporation, or SPAC — and the clock is ticking. Its owner, LiveOne, has signed a letter of intent to combine Slacker, which it estimates will have a valuation of $160 million, with Roth CH Acquisition V Co.

Starting a SPAC gives the founders a limited window to put investors’ money to good use or return the funds to shareholders. Running out of time to close a deal with Slacker, in May, Roth received shareholder approval to extend the merger deadline by up to six months. The extension ends Dec. 4 — barely more than three months away. “It seems [like a] very tight [timeline],” says, an attorney at Michelman & Robinson. “I mean, conceivably they could still complete it.

 

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