Auddia has dropped its effort to acquire the AM/FM radio streaming app Radio FM.
It released a statement from Executive Chairman Jeff Thramann: “We have been pursuing an aggressive AM/FM streaming app acquisition strategy by negotiating with three targets simultaneously. It is now clear that market conditions are unfavorable for securing the largest acquisition as our first target.”
Auddia is an AI-based company whose stock trades on NASDAQ, though it has recently been taking steps to avoid being delisted.
CFO John Mahoney said, “As we executed the purchase agreement for Radio FM and began to explore financing options in the current market, it became clear that a far more capital efficient process would be to proceed with acquiring target #2 followed by target #3, both of which require substantially less cash at closing.”
Auddia had hoped to add 4.6 million users through the deal. Completion of the agreement was subject to financing.
The acquisition was priced at $13 million cash with an additional $2 million paid in six months if certain performance milestones are met.
The two parties terminated their purchase agreement. Auddia said it hopes to “reengage” with Radio FM later.
The company recently completed a 1-for-25 reverse stock split to avoid being delisted on NASDAQ. In December it named a new CFO, John Mahoney, to succeed Tim Ackermann, who resigned last summer.
It owns the audio app faidr, which allows listeners the ability to listen to any AM/FM streamer with added personalized content and no commercials, as well as podcasts with an interactive digital feed.
