Audioboom shares surge as it confirms possible sale
Podcasting platform Audioboom has confirmed recent speculation it is looking to sell the company, sending shares soaring today.
The company’s board released a statement this morning to confirm New York-based Raine Advisors was advising the company to help them “deliver maximum value for its shareholders”.
It added: “Raine will provide advice and assistance to the Company in relation to a range of corporate options including, inter alia, strategic partnerships, financial investment, business combinations and potentially the sale of the Company.”
Audioboom will now go into an “offer period”, with Allenby Capital also acting as a financial adviser.
The announcement sent shares in the AIM-listed company up by 8.76 per cent to 242p at the end of the day’s trading.
Audioboom, which is backed by property tycoon Nick Candy, has more than 13,000 content channels and attracts in excess of 60m listens each month.
The platform includes podcasts from The Spectator magazine, former rugby player Lewis Moody and broadcaster Sue Perkins.
Among those who could be interested in bidding for Audioboom is digital music group Spotify, TalkSport owner News Corp and Capital and Smooth radio owner Global, City sources told Sky News on Saturday.
Candy Ventures is another possible contender to take the company private.
Audioboom said on Friday it had secured a $4m joint-loan from Candy Ventures and Michael Tobin, the podcaster’s chairman.
A statement read: “Historically, the growth of Audioboom has been financed by the issue of equity with consequential dilution to the company’s shareholders, and the board believes that the expectation of potential equity issues has had a negative impact on the company’s share price.
“The board is increasingly confident in management’s ability to forecast performance and growth prospects, as demonstrated by the recently announced 2019 year-end trading update, in which market expectations were exceeded for the first time in the company’s history.”