(Image courtesy of Stingray/TuneIn)
Montreal-based audio and video content distributor Stingray Group has announced it has an agreement to acquire California-based TuneIn Holdings, a live audio streaming and ad monetization platform.
Stingray will pay US$150 million upon the closure of the deal and up to US$25 million in the year following. Stingray has secured a term loan to finance the transaction, which is subject to the approval of TuneIn’s shareholders, regulatory approvals and customary closing conditions. It’s expected to close by the end of the year.
Stingray offers a variety of music, digital and advertising services to brands and retailers, including audio and video channels, more than 100 radio stations, subscription video-on-demand content, FAST channels and in-car and in-vehicle infotainment content. Its Stingray Advertising division delivers digital-audio messaging to more than 30,000 major retail locations.
Stingray said the acquisition is expected to significantly expand its global digital audio footprint, accelerate its growth in streaming services and bolster its advertising offering by incorporating TuneIn’s ad platform, which delivers targeted audio, video and display advertising solutions. Stingray also expects to leverage TuneIn’s existing partnerships with device manufacturers, automotive companies and content providers.
TuneIn currently serves over 75 million monthly active listeners worldwide, with more than 100,000 radio stations, podcasts, music channels, news, sports and audiobooks. Its content is distributed across more than 200 platforms and connected devices, including in-car audio systems, in more than 100 countries. The service will continue to operate under its existing brand.
“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,” Eric Boyko, president, co-founder and CEO of Stingray, said in a statement. “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.”
The companies said the new entity’s projected revenue will top US$400 million.
