Audioboom has hired an outside financial advisor to examine “strategic options” for the company, including a potential sale. In a statement to investors, the company said it has retained New York-based Raine Advisors to “provide advice and assistance” as the company also looks at strategic partnerships and potential merger options. CEO Stuart Last told Podcast News Daily last week that current industry trends make growing larger an attractive move.
“We’re still relatively small, and there may be some benefit in us joining forces with other similarly sized companies,” Last said. “I wouldn’t say we are deliberately positioning ourselves or looking for that. We are confident in continuing this growth that we have for a while, but if the right opportunity came our way we’d have to consider it because the whole industry is consolidating. We don’t want to be in a position in 18 months or two years when that consolidation has happened around us and we can’t compete anymore because we’re not part of a bigger group.” In December, Last was named permanent CEO by the board after previous CEO Rob Proctor stepped down.
Audioboom told investors that it has not yet received any formal offers to acquire the company. But Last said last week he’s routinely had conversations with others about potential opportunities, and the company says it now considers itself to be in a formal “offer period.”
News of a potential sale has sent shares of Audioboom’s stock up by about a third in London, where its shares are traded.
Revenue nearly doubled last year at Audioboom, which exceeded expectations for the first time since the company launched six years ago. Audioboom says revenue soared 91% to $22.2 million last year. That was up from $11.7 million in 2018.