Montreal-headquartered music, media, and tech company Stingray has acquired internet radio streaming service TuneIn, previously valued at roughly $500 million, for up to $175 million.
The transaction value is based on TuneIn’s projected sales of $110 million and adjusted EBITDA of $30 million for the 12 months ending December 31, 2025, according to a press release on Monday (November 11). The deal values TuneIn at 5.8 times its projected adjusted EBITDA.
Stingray will pay $150 million at closing and up to $25 million one year later. The transaction was financed through a $150 million term loan under Stingray’s renewed credit facility.
In December last year, Stingray said it upped its credit facility by CAD $80 million to CAD $500 million (USD $357 million at the average exchange rate for 2024), provided by a syndicate of Canadian banks led by National Bank Financial Markets and Caisse Desjardins as co-lead runners.
The acquisition comes as Stingray seeks to expand its global digital audio footprint.
Founded in 2002, TuneIn was an early entrant in online music streaming but took a different approach than competitors like Spotify or Apple Music. Instead of offering on-demand music subscriptions, TuneIn focused on streaming traditional radio stations over the internet, along with news, talk programming and live sports. The company later introduced a paid subscription tier that included audiobooks and ad-free radio channels.
From $7.99 per month in the US in 2015, a TuneIn Premium subscription now costs $9.99 per month. The Premium tier offers commercial-free access to CNN, Fox News Radio, MSNBC and more, over 100,000 audiobooks, and 100,000 global radio stations and podcasts, among others.
TuneIn currently serves more than 75 million monthly active listeners worldwide. The service is distributed across more than 200 platforms and connected devices, including over 50 in-car audio systems in more than 100 countries.
For Stingray, which operates 97 radio stations and provides music tech and advertising services, the acquisition bolsters its automotive sector presence. Both companies have established integrations with vehicle manufacturers.
Eric Boyko, President, Co-founder, and CEO of Stingray, said: “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.”
“We’re particularly excited about expanding our reach in the automotive sector, where TuneIn and Stingray have both established strong integrations with leading manufacturers.”
Eric Boyko, Stingray
The transaction also bolsters Stingray’s advertising business as TuneIn operates an ad platform that delivers targeted audio, video and display advertising. Stingray’s existing retail audio advertising network already reaches more than 33,500 major retail locations in North America.
Stingray expects to achieve $10 million in operational synergies within 12 to 18 months after closing. Once the deal completes, the combined entity’s pro forma revenue will exceed $400 million.
Toronto-listed Stingray on Wednesday (November 12) reported a 102.5% YoY jump in net income in the fiscal second quarter ended September 30 to CAD $11.8 million ($8.4m) . Revenues in fiscal Q2 also climbed 21% YoY to CAD $113.3 million ($81m), according to its financial report.
Shares of Stingray surged 17% to an all-time high in Toronto trading on Wednesday.
Meanwhile, TuneIn will continue operating under its existing brand following the acquisition, according to Stingray. The company has nearly 1,000 employees worldwide and reaches 540 million consumers in 160 countries.
Boyko said: “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.
“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.”
Richard Stern, Co-Chairman and CEO of TuneIn, said: “Stingray is the ideal partner to propel TuneIn’s next chapter of growth.”
“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.”
Richard Stern, 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.”
Following the release of the company’s fiscal Q2 figures, Boyko said the TuneIn acquisition “will result in the creation of an audio streaming and monetization powerhouse.”
“We are confident this highly transformative acquisition—supported by significant revenue and cost synergies—will supplement our robust internal growth, deliver higher margins over time, and ultimately build shareholder value.”
TuneIn marks Stingray’s latest acquisition after the company acquired music branding and in-store audio advertising DMI two weeks ago. The deal expands Stingray’s retail media network by about 8,500 locations in the US, taking the total to 33,500 locations in North America.
Stingray’s recent partnerships include a deal with TikTok to launch TikTok Radio en Español and TikTok Radio Brasil in Latin America and Brazil; and a partnership with LG Electronics to upgrade its free ad-supported audio streaming service, LG Radio+.
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