Stingray has closed on its purchase of TuneIn.
Stingray paid $150 million at closing and will be responsible for up to an additional $25 million within 12 months based on forecasted sales of $110 million and adjusted EBITDA of $30 million for the year ending December 31.
Stingray Co-Founder and President/CEO Eric Boyko said, “We are delighted to complete this strategic acquisition and officially welcome the TuneIn team to Stingray. The combination strengthens our market position in the global audio landscape, expands our reach to millions of new listeners, and creates significant new opportunities for expansion. We are focused on seamlessly integrating TuneIn and executing our strategy to drive long-term growth.”
Original Report 11/11: Montreal based Stingray Group has announced it is acquiring TuneIn for up to $175 million.
Stingray owns music, digital and advertising services worldwide including audio and video channels, subscription video on-demand content, FAST channels, karaoke products, music apps, commercial in-store business and audio advertising networks, and 97 radio stations in Canada. The deal is structured with Stingray paying $150 million USD at closing and up to an additional $25 million within 12 months based on forecasted sales of $110 million and adjusted EBITDA of $30 million for the year ending December 31. It is expected to close at the end of the year following TuneIn shareholder and regulatory approval.
Stingray says that the “acquisition is expected to significantly expand Stingray’s global digital audio footprint, accelerate its growth in streaming services and bolster its advertising offering by incorporating TuneIn’s comprehensive ad platform, which delivers targeted audio, video, and display advertising solutions.”
Stingray President/CEO Eric Boyko said, “This acquisition marks a pivotal moment in Stingray’s journey to further strengthen its position as a global leader in audio entertainment and digital advertising sales. We are crafting an unmatched audio ecosystem by merging Stingray’s extensive technology infrastructure and content distribution capabilities with TuneIn’s expertise in monetization, advertising technology, and diverse content offerings. We’re particularly excited about expanding our reach in the automotive sector, where TuneIn and Stingray have both established strong integrations with leading manufacturers. This aligns perfectly with our strategy to meet listeners wherever they are – at home, in the car, or at retail locations. Together, we are poised to redefine audio for a connected world, delivering extraordinary value to our listeners, content partners, and advertisers.”
The company adds that the deal “creates a global audio leader with meaningful scale. The combination of TuneIn’s active listeners and Stingray’s existing distribution provides advertisers with a highly engaged audience. This acquisition solidifies Stingray’s position as a key player in the rapidly growing digital audio advertising market and enhances its portfolio with a profitable, growing digital asset, pushing the combined entity’s pro forma revenue beyond US$400 million (CA$560 million).”
TuneIn Co-Chairman and CEO Richard Stern commented, “Stingray is the ideal partner to propel TuneIn’s next chapter of growth. Our global reach and advanced advertising capabilities, combined with Stingray’s audio and video distribution, creates a significant growth opportunity for both our companies. Joining forces with Stingray allows us to accelerate our mission of delivering the world’s best audio content to listeners everywhere, while creating powerful new avenues for advertisers to connect with a highly engaged audience.”
