TuneIn Acquired for $175 Million in Major Streaming Deal
▼ Summary
– TuneIn has been acquired by Stingray Group for $175 million, a significant drop from its previous $500 million valuation.
– The company differentiated itself by streaming traditional radio stations online, offering diverse content like news and sports alongside music.
– TuneIn struggled to compete as consumer preferences shifted toward podcasts and ad-free subscription services like Spotify.
– Stingray aims to expand its global reach through TuneIn’s presence on over 200 platforms and 50 in-car audio systems across 100+ countries.
– The acquisition price was based on TuneIn’s projected $110 million in sales and $30 million adjusted EBITDA for the year ending December 2025.
In a significant move within the digital audio sector, Stingray Group has finalized its acquisition of the internet radio service TuneIn for a total of $175 million. The transaction involves an immediate payment of $150 million, with an additional $25 million due one year following the deal’s closure. Stingray financed this strategic purchase using funds from its recently renewed credit facility.
TuneIn, originally founded in 2002, was a pioneer in streaming traditional radio stations online. While services like Apple Music and Spotify Premium built their models around on-demand, subscription-based music, TuneIn carved out a different niche. Its platform enabled users to access a vast array of live radio content, including music, news, talk shows, and live sports broadcasts from around the world. The company later introduced a paid subscription tier, offering benefits such as ad-free listening and access to audiobooks in an effort to diversify its revenue streams.
Despite its early market entry and extensive content library, TuneIn encountered stiff competition in an increasingly crowded streaming landscape. Shifts in listener behavior, particularly the mass migration from talk radio to on-demand podcasts, presented significant challenges. At the same time, consumer willingness to pay for ad-free music subscriptions grew, placing pressure on TuneIn’s core ad-supported and hybrid model.
Stingray, a Montreal-based music and technology firm with its own portfolio of radio stations, identified TuneIn as a valuable asset to broaden its global footprint. A key attraction was TuneIn’s extensive integration across more than 200 platforms and connected devices, including audio systems in over 50 different automobile models. This widespread availability across more than 100 countries offers Stingray immediate and substantial scale.
The acquisition price was determined based on TuneIn’s projected financial performance, including forecasted sales of $110 million and an adjusted EBITDA of $30 million for the twelve-month period ending December 31, 2025. With a user base exceeding 75 million monthly active listeners worldwide, TuneIn brings considerable audience reach. Stingray has confirmed that the TuneIn brand will be retained post-acquisition. Once the transaction is fully completed, Stingray anticipates its combined annual revenue will surpass $400 million, marking a new chapter for both companies in the audio streaming industry.
(Source: TechCrunch)
