Auddia Announces Signing of Third Non-Binding LOI for its Streaming Audio M&A Strategy
Proposed acquisition target would accelerate audio Superapp status by introducing unique high-margin music player capabilities into faidr
Proposed additional functionality would improve margins by significantly reducing the cost of delivering cover content during radio ad-breaks
Technology platform of target would add further differentiation to AM/FM streaming by advancing personalization capabilities of faidr
If closed, the proposed transaction would provide direct access into the stereo headunits of multiple leading auto manufacturers
BOULDER, CO, Nov. 29, 2023 (GLOBE NEWSWIRE) -- via NewMediaWire - Auddia Inc. (NASDAQ:AUUD) (NASDAQ:AUUDW) (“Auddia” or the “Company”), developer of a proprietary AI platform for audio identification and classification and related technologies that is reinventing how consumers engage with audio, today announced the execution of a third non-binding letter of intent as part of its buy-side M&A strategy aimed at cost effectively growing its user base.
“If this proposed acquisition is successfully closed, we would secure not only a healthy, revenue generating and positive cash flow business but also a talented engineering team, a robust backend system that would allow us to offer more differentiation in our audio Superapp, and potential future pathways to increase revenue through user monetization, including both ad integrations and subscription,” said Jeff Thramann, Executive Chairman of Auddia.
In June 2023, the Company announced it had executed two non-binding LOIs , targeting audio-streaming applications with a combined user base of more than 8 million AM/FM streamers. These potential acquisitions are continuing to make progress towards execution of binding purchase agreements. The closing of any of our three proposed acquisitions will be contingent upon securing adequate financing.
Auddia CEO Michael Lawless added, “We have now entered into a non-binding LOI with our third acquisition target and have completed the diligence phases for our previous two targets. The three acquisitions together, if successfully closed, would result in more than $6.5 million in acquired annual revenue, approximately $3M in free cash flow to reduce burn, and provide the opportunity for substantial revenue upside through optimizing acquired ad revenue and delivering premium subscription products to the acquired user bases, not to mention extending our ability to deliver our applications directly into the automobile for the first time. If this third acquisition is successfully closed, Auddia would also be able to fulfill its Superapp strategy sooner and deliver a vastly superior audio experience through a substantial global AM/FM infrastructure.”
The Company will provide updates on the M&A strategy as definitive purchase agreements are executed. The closing of any proposed acquisitions will be contingent on securing additional financing.
About Auddia Inc.
Auddia, through its proprietary AI platform for audio identification and classification and related technologies, is reinventing how consumers engage with AM/FM radio, podcasts, and other audio content. Auddia’s flagship audio superapp, called faidr, brings two industry firsts to the audio-streaming landscape: subscription-based, ad-free listening on any AM/FM radio station and podcasts with interactive digital feeds that support deeper stories and open untapped revenue streams to podcasters. faidr also delivers exclusive content and playlists, and showcases exciting new artists, hand-picked by curators and DJs. Both differentiated offerings address large and rapidly growing audiences with strong purchase intent. For more information, visit: www.auddia.com
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 about the Company's current expectations about future results, performance, prospects and opportunities. Statements that are not historical facts, such as "anticipates," "believes" and "expects" or similar expressions, are forward-looking statements. These forward-looking statements are based on the current plans and expectations of management and are subject to a number of uncertainties and risks that could significantly affect the Company's current plans and expectations, as well as future results of operations and financial condition. These and other risks and uncertainties are discussed more fully in our filings with the Securities and Exchange Commission. Readers are encouraged to review the section titled "Risk Factors" in the Company's Annual Report on Form 10-K for the year ended December 31, 2022, as well as other disclosures contained in the Annual Report and subsequent filings made with the Securities and Exchange Commission. Forward-looking statements contained in this announcement are made as of this date and the Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
Kirin Smith, President
PCG Advisory, Inc.