Radio streamer TuneIn acquired for $175M

The internet radio platform TuneIn, once valued at approximately $500 million, has been acquired by the Stingray Group for $175 million. The deal, which includes an initial payment of $150 million at closing and an additional $25 million a year later, was financed through a loan from Stingray’s renewed credit facility, as announced by the company on Wednesday. Founded in 2002, TuneIn pioneered the online music streaming space, differentiating itself from subscription services like Apple Music and Spotify by focusing primarily on streaming traditional radio stations. This approach enabled TuneIn to offer a diverse array of content, including music, news, talk shows, and live sports. The company also sought to monetize its offerings through a paid subscription model that provided ad-free radio and access to audiobooks. Despite its early success, TuneIn faced challenges in the increasingly competitive streaming market, particularly as audiences shifted their preferences towards podcasts and became more amenable to paying for ad-free music experiences. Stingray, based in Montreal and involved in radio broadcasting, music technology, and advertising services, aims to leverage TuneIn's extensive reach, which spans over 200 platforms and connected devices, including more than 50 in-car audio systems across 100 countries. The acquisition price reflects TuneIn's projected $110 million in sales and an adjusted EBITDA of $30 million for the fiscal year ending December 31, 2025. With more than 75 million monthly active listeners globally, Stingray plans to maintain the TuneIn brand following the completion of the acquisition, expecting its revenue to surpass $400 million.