Stingray acquires TuneIn: a “transformative” deal to dominate connected audio

Canadian group Stingray has just completed its biggest acquisition to date: the purchase of TuneIn, the U.S. radio and audio-streaming giant, for US$175 million. It’s a major turning point for the Montreal-based company, which now aims to establish itself as a global force in the audio ecosystem, particularly in the connected-car space.

Who is Stingray?

Founded in Montreal in 2007, Stingray is a leading provider of music and audiovisual services for businesses, media companies and consumers. Operating in more than 160 countries, the company supplies music channels, music videos, karaoke, ambient soundscapes and broadcast solutions to hotels, retailers, TV operators and digital platforms.

Listed on the Toronto Stock Exchange (TSX: RAY.A), Stingray claims a global reach of 540 million listeners and viewers across all of its services — a number that includes its music TV channels, streaming apps (Stingray Music, Qello Concerts, Calm Radio…) and its B2B clients in retail and hospitality (125,000+ distribution points across 13,000 clients).

On the other side, TuneIn is one of the world’s largest online radio and audio platforms, founded in 2002. The app offers access to 100,000+ radio stations, podcasts, music channels, news, sports and even audiobooks. Available on mobile, smart speakers, smart TVs and a wide range of vehicles (Tesla, Rivian, Volvo, Mercedes, Jaguar, Land Rover…), TuneIn boasts 75 million monthly active listeners in more than 120 countries.

“TuneIn is the third most-listened-to music company in the world, after YouTube Music and Spotify,” says Eric Boyko, Stingray’s CEO and co-founder.

The connected car: the new audio gold rush

One of the key drivers of this acquisition lies inside the vehicle cabin. Already integrated into many cars, TuneIn gives Stingray a direct path into the massive market of in-car entertainment systems. Boyko has a clear ambition: replace SiriusXM as the global audio reference inside vehicles.

The model they envision relies partly on audio advertising — standard for radio — but also on revenue-sharing deals with automakers.

“With TuneIn, our goal is to dominate the in-car audio system globally,” says Boyko, who confirms discussions with “dozens of manufacturers.”

Accelerated growth in the United States

This is Stingray’s second U.S. acquisition in less than a month, following its purchase of DMI (Pasadena), a company specialising in in-store audio branding and advertising. In its 18 years of existence, Stingray has completed more than 40 acquisitions, including 30+ in the U.S., which now represents an increasingly large share of its business.

Financial performance at a record high

Alongside the announcement, Stingray reported a 21% increase in quarterly revenue (CA$113.3M) and a doubling of net profit (CA$11.8M). The group also raised its quarterly dividend by 13%. Stingray’s share price has climbed 50% since the start of the year, reaching more than CA$11 — its highest level since going public in 2015.