Stingray Acquires TuneIn, Creating an Audio Streaming and Advertising Powerhouse

Executive Summary

• Stingray Group Inc. entered into a definitive agreement to acquire TuneIn Holdings, Inc. for up to US $175 million (US $150 M payable at closing plus up to US $25 M one‑year post‑closing).
• The deal is financed in part by an additional US $150 million term loan under Stingray’s renewed credit facility.
• Pro forma, the combined entity is expected to generate >US $400 million of revenue (≈CA $560 million) and achieve operational synergies of roughly US $10 million within 12‑18 months.

Key Details

• Transaction Value: Up to US $175 M (US $150 M at closing, up to US $25 M earn‑out).
• Financing: Additional US $150 M term loan secured under Stingray’s renewed credit facility.
• Closing Timeline: Subject to TuneIn shareholder approval, regulatory approvals and customary conditions; expected by year‑end 2025.
• TuneIn Forecast (12 months ending Dec 31 2025): Revenue US $110 M; Adjusted EBITDA US $30 M.
• Implied Valuation Multiple: Adjusted EBITDA multiple of ~5.8× pre‑synergies.
• Synergy Estimate: US $10 M of operational synergies anticipated within 12‑18 months post‑closing.
• Pro Forma Revenue (combined): >US $400 M (≈CA $560 M).
• Strategic Rationale: Expansion of Stingray’s global digital audio footprint, acceleration of streaming growth, and bolstering of advertising capabilities via TuneIn’s ad platform.
• Operational Reach: TuneIn serves >75 million monthly active listeners across 200+ platforms/devices in >100 countries; >100 k radio stations/podcasts available.
• Leadership Comments:
• Eric Boyko (President, Co‑founder & CEO, Stingray) highlighted the creation of a “global audio leader” and the opportunity to expand in automotive and retail environments.
• Richard Stern (Co‑Chairman & CEO, TuneIn) emphasized the growth potential for both companies and the combined advertising reach.
• Advisors:
• Stingray – National Bank Capital Markets (financial), Davies Ward Phillips & Vineberg LLP (legal).
• TuneIn – Houlihan Lokey Capital, Inc. (financial), Skadden, Arps, Slate, Meagher & Flom LLP (legal).

Notable Quotes

• “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,” – Eric Boyko, President, Co‑founder & CEO, Stingray.
• “Stingray is the ideal partner to propel TuneIn's next chapter of growth,” – Richard Stern, Co‑Chairman & CEO, TuneIn.