**Stingray Group Acquires Internet Radio Pioneer TuneIn for $175 Million**
In a significant development for the digital audio industry, Montreal-based music and technology company Stingray Group has announced the acquisition of TuneIn, a longtime player in internet radio streaming. The deal, valued at $175 million, marks the end of an era for TuneIn, which once boasted a valuation of approximately $500 million during its prime years. This acquisition highlights both the challenges faced by internet radio platforms in a rapidly evolving streaming landscape and Stingray’s ambition to broaden its global reach.
**TuneIn’s Rise and Challenges**
Founded in 2002, TuneIn emerged as an early innovator in the online audio space. Unlike music streaming giants such as Apple Music and Spotify, which focus on providing ad-free, on-demand music through subscription models, TuneIn carved out a unique niche by streaming traditional radio stations over the internet. This approach enabled TuneIn to offer an eclectic mix of content, including not only music but also news, talk shows, live sports, and even audiobooks. For users, TuneIn became a gateway to thousands of radio stations from around the world, accessible through computers, smartphones, smart speakers, and even in-car audio systems.
Despite this broad content offering, TuneIn struggled to maintain its competitive edge as the digital audio market matured. The proliferation of on-demand streaming services shifted consumer preferences toward personalized, ad-free listening experiences. At the same time, the rise of podcasts began to erode demand for traditional talk radio, further impacting TuneIn’s position. While the company did attempt to diversify revenue streams by introducing paid subscriptions that offered features like ad-free listening and access to audiobooks, these efforts were not enough to contend with the dominance of larger streaming platforms and the rapidly changing habits of listeners.
**The Stingray Acquisition**
Stingray Group, headquartered in Montreal, is known for its ownership of radio stations and its broad range of music technology and advertising services. The company’s acquisition of TuneIn is driven by a desire to strengthen its presence in the global audio market and leverage TuneIn’s extensive distribution network. According to Stingray, TuneIn’s content is currently available on over 200 platforms and connected devices, including more than 50 in-car audio systems, reaching listeners in over 100 countries. This widespread accessibility is a key asset for Stingray as it seeks to forge new partnerships with device manufacturers, automakers, and content creators.
Financially, the deal consists of an upfront payment of $150 million, with an additional $25 million contingent on performance metrics to be paid a year after closing. Stingray financed the acquisition through a loan under its renewed credit facility, demonstrating its commitment to expanding its digital audio portfolio.
The purchase price reflects TuneIn’s projected financial performance for the upcoming year. The company anticipates sales of $110 million and an adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) of $30 million for the