Stingray Group, a music and technology company, has acquired TuneIn, an internet radio service, for $175 million. The deal, financed through a loan, includes a $150 million upfront payment and an additional $25 million after one year. Founded in 2002, TuneIn differentiated itself by focusing on streaming traditional radio stations online, offering a diverse range of content beyond music, including news, talk, and sports.
While competitors like Apple Music and Spotify Premium thrived with subscription-based ad-free music, TuneIn struggled as talk radio shifted to podcasts and the demand for ad-free music grew. The acquisition by Stingray aims to leverage TuneIn’s content diversity and global reach, available on over 200 platforms worldwide, to enhance partnerships with device manufacturers, automakers, and content providers.
The $175 million purchase price was based on TuneIn’s projected sales of $110 million and adjusted EBITDA of US$30 million. With over 75 million monthly active listeners globally, Stingray plans to retain the TuneIn brand and expects its revenue to surpass $400 million post-acquisition.
Source: TechCrunch