MONTREAL—Stingray Group Inc. has announced that it has entered into a definitive agreement to acquire TuneIn Holdings, Inc. (‘’TuneIn’’), a pioneer in live audio streaming and ad monetization, in a transaction that is valued as being worth up to $175 million.
TuneIn already has a major presence in the audio streaming market, where it serves over 75 million active listeners each month worldwide, providing access to more than 100,000 radio stations, podcasts, music channels, news, sports, and audiobooks. TuneIn's content is distributed across more than 200 platforms and connected devices, including over 50 in-car audio systems, in over 100 countries.
The combination will also have implications for the video streaming business. Stingray’s video distribution and advertising platforms could help TuneIn carry out its previously announced plans to expand its video offerings and advertising.
The price for the deal is based on TuneIn's forecasted sales of $110 million and adjusted EBITDA (earnings before interest taxes depreciations and amortization) of $30 million for the twelve-month period ending December 31, 2025. Stingray will pay $150 million at closing and up to $25 million 12 months following the closing. Stingray secured an additional $150 million term loan under its renewed credit facility to finance the transaction.
The two companies also said that this 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.
The acquisition will also enhance Stingray’s reach by combining its premium music and video content with TuneIn's robust partnerships with major device manufacturers, automotive companies, and content providers.
Stingray provides an array of global music, digital, and advertising services to enterprise brands worldwide, including audio and video channels, 97 radio stations, subscription video-on-demand content, FAST channels, karaoke products and music apps, and in-car and on-board infotainment content.
Stingray Business, a division of Stingray, provides commercial solutions in music, in-store advertising, digital signage, and AI-driven consumer insights and feedback and Stingray Advertising is North America's largest retail audio advertising network, delivering digital audio messaging to more than 33,500 major retail locations. Stingray has close to 1,000 employees worldwide and reaches 540 million consumers in 160 countries.
"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," stated Eric Boyko, president, co-founder, and CEO of Stingray. "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 two companies said that the deal will push the combined entity's pro forma revenue beyond $400 million (CA$560 million).
"Stingray is the ideal partner to propel TuneIn's next chapter of growth," said Richard Stern, co-chairman and CEO of TuneIn. "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."
