Activism Could Rescue Value For Shareholders Of Fast Growing Liberated Syndication

Western Edge profile picture
Western Edge


  • Liberated Syndication is a leader in the fast growing world of podcasts and quickly growing top line revenues at an organic 4 year CAGR of 15%.
  • Gross margins have been stellar, and the business has the ability to generate significant free cash flow with little overhead and capex requirements.
  • Management however has a checkered history. With little board independence, insiders are capturing the lion-share of the benefits from LSYN’s success to enrich themselves at the detriment of shareholders.
  • As a result, an activist hedge fund has acquired a 6% stake in LSYN and is proposing the replacement of all four members of the board.

Editor's note: Seeking Alpha is proud to welcome Western Edge as a new contributor. It's easy to become a Seeking Alpha contributor and earn money for your best investment ideas. Active contributors also get free access to SA Essential. Click here to find out more »

LSYN is a leader in a fast growing industry with great financial results

Liberated Syndication (OTCQB:LSYN) is a little heard of micro-cap stock that trades OTC. They are a leading host/distributor of podcasts, and according to their latest investor presentation, they have a 28.2% share of the top 400 podcasts as of August 2018, the largest of anyone in the industry. Edison Research has an excellent report on podcast consumers that highlights the ongoing growth in podcast listeners and the continued expansion of the industry.

Percent of US population over 12 that listen to podcasts monthly:

Source: Edison Research

Percent of US population over 12 that listen to podcasts weekly:

Source: Edison Research

LSYN was an early entrant into the field and has been well positioned to take advantage of these trends. Their organic revenues have grown 25% on average since 2015 with a 5 year CAGR of 15%.

Source: S&P Cap IQ

The jump in revenues in 2018 is a result of the acquisition of a web hosting firm, Pair Networks, Inc. The total purchase price was $16.12mm and the operations contributed $9.37mm to 2018’s revenue. The below graphic from LSYN’s Q1 2019 investor presentation breaks out the firm’s sources of revenue after the Pair acquisition.

Source: LSYN Q1 2019 Investor Presentation

The podcast and web hosting platforms operate under a similar business model. LSYN offers a range of options for companies/individuals interested in publishing a podcast/website. These options have different monthly prices based on the publisher's needs and can range from $5-$75 a month for

This article was written by

Western Edge profile picture
I am a private investor.

Disclosure: I am/we are long LSYN. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Recommended For You

Comments (3)

To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.
Is this happening to you frequently? Please report it on our feedback forum.
If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh.