Internet radio pioneer TuneIn, once valued at a hefty half-billion dollars during its peak, has been acquired by Canadian media company Stingray Group for a significantly reduced sum of $175 million. This deal marks a notable change in the streaming landscape as consumer habits evolve and traditional radio faces increasing competition.
Founded in 2002, TuneIn carved its niche by offering free, ad-supported streaming of terrestrial radio stations online. Unlike subscription services like Apple Music or Spotify Premium that focus on on-demand music playback, TuneIn’s model encompassed a broader spectrum of content: news, talk shows, live sports, alongside music. While the company experimented with paid subscriptions to unlock additional features like audiobooks and ad-free listening, it ultimately struggled to gain significant traction in a market dominated by giants offering curated playlists and personalized experiences.
The shift towards podcasting further complicated TuneIn’s position. The rise of audio-on-demand platforms catering to specific interests saw many listeners migrate from traditional talk radio formats, diminishing TuneIn’s core appeal. Simultaneously, the increasing popularity of ad-free music subscriptions also chipped away at its user base.
For Stingray Group, however, TuneIn represents a strategic opportunity for expansion. The Montreal-based company specializes in radio broadcasting and provides music technology solutions alongside advertising services. By acquiring TuneIn, Stingray aims to leverage its existing network of 200+ platforms and connected devices, including over 50 car audio systems spanning more than 100 countries. This significantly broadens Stingray’s reach, particularly through partnerships with manufacturers, automakers, and content providers.
The purchase price – $150 million at closing, with an additional potential $25 million a year later – reflects TuneIn’s projected financial performance for the next few years. Based on forecasted revenue of $110 million and adjusted EBITDA of US$30 million by December 2025, Stingray Group sees this acquisition as financially sound. With over 75 million monthly active listeners worldwide, TuneIn retains significant user engagement despite its financial struggles.
Stingray insists that the iconic TuneIn brand will remain intact following the deal, promising to retain the platform’s existing functionality and content offerings. Upon completion of the transaction, Stingray anticipates exceeding $400 million in annual revenue, solidifying its position as a major player in the evolving media landscape.
