Montréal-based Stingray Group is set to acquire fellow music and media technology company TuneIn Holdings for up to $175 million USD ($245 million CAD).
“This aligns perfectly with our strategy to meet listeners wherever they are – at home, in the car, or at retail locations.”
Stingray expects acquiring the San Francisco-based company to “significantly expand” its global digital audio footprint and growth in streaming services. It also expects to benefit from incorporating TuneIn’s targeted advertisement platform. Stingray will pay $150 million USD ($210 million CAD) up front, which it financed through a term loan, and up to $25 million USD ($35 million CAD) 12 months after the transaction closes.
The transaction’s value is based on TuneIn’s forecasted sales of $110 million USD (154 million CAD) and adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) of $30 million USD ($42 million CAD) for the twelve-month period ending Dec. 31, 2025, according to Stingray. Following approval by TuneIn shareholders and other closing conditions, the acquisition is expected to complete by the end of the year. TuneIn will continue to operate under its existing brand name following the acquisition.
TuneIn provides more than 100,000 radio stations, podcasts, music channels, and general audio entertainment to over 75 million global listeners every month, according to Stingray. Its content is distributed across more than 200 platforms and connected devices, including over 50 in-car audio systems in more than 100 countries.
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“We’re particularly excited about expanding our reach in the automotive sector, where TuneIn and Stingray have both established strong integrations with leading manufacturers,” Stingray president, co-founder, and CEO Eric Boyko said in a statement. “This aligns perfectly with our strategy to meet listeners wherever they are – at home, in the car, or at retail locations.”
Founded in 2007, Stingray offers a variety of audio and video content through television broadcasting, streaming, and radio. Its business division provides commercial solutions in music, in-store advertising, digital signage, and consumer insights and feedback, while its advertising network delivers digital audio messaging to more than 33,500 major retail locations. Stingray says it has close to 1,000 employees and reaches 540 million consumers in 160 countries.
Folding in TuneIn’s active listeners with Stingray’s existing distribution “creates a global audio leader with meaningful scale,” Stingray said. The combined entity’s expected revenue and adjusted EBITDA will exceed $400 million USD ($560 million CAD).
Stingray announced the TuneIn acquisition alongside its second-quarter earnings call this week, which outlined growth in revenue, net income, and adjusted EBITDA. Investors reacted favourably to the news and the earnings on the Toronto Stock Exchange, with Stingray’s stock price shooting up nearly 20 percent on market open Wednesday morning, from $11.15 CAD to $13.15 CAD per share as of this writing.
Feature image courtesy Stingray.