Montreal’s Stingray Group to Acquire Audio Streamer TuneIn for Up to $175-Million
Montreal, QC – Montreal-based Stingray Group Inc. announced today it has entered into a definitive agreement to acquire TuneIn, a leading global audio streaming service, for a total consideration of up to US$175-million. teh deal, expected to close later this year, substantially expands Stingray’s reach in the rapidly evolving audio entertainment landscape and strengthens its position as a key in-car entertainment provider.
Stingray, known for its curated music channels and in-store audio solutions for businesses like Loblaws and Dollarama, currently supplies cabin karaoke systems to major automakers including Tesla Inc., Ford Motor Co., Audi AG, and China’s BYD Co. Ltd. The acquisition of TuneIn, which boasts supply contracts with approximately 10 other auto manufacturers, will combine the companies’ automotive offerings, providing a more thorough audio experience for drivers.
“Us together in the cars, you’re going to have Stingray music, you’re going to have TuneIn radio and you’re going to have our karaoke,” said Stingray CEO Eric Boyko. “You put all three together and you really control the audio.”
The purchase price includes an initial payment of US$106.5-million, with potential earn-out payments of up to US$68.5-million based on TuneIn’s future performance. A new investment in TuneIn was made by Venture Capital firm Innovation Endeavors in November 2020 to accelerate technology innovation and market share growth. The company also experienced a surge in U.S. downloads in 2021 after actor Tom Hanks identified TuneIn as his preferred audio app on The Late Show with Stephen Colbert.
Approximately 100 TuneIn employees are expected to relocate to Montreal following the deal’s completion, coinciding with Quebec’s recent announcement of a reduction in its annual immigration target to 45,000 new permanent residents.
