Auddia Announces Signing of Third Non-Binding LOI for its Streaming Audio M&A Strategy
November 29 2023 - 8:00AM
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
Forward-Looking StatementsThis 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.
Investor Relations:Kirin Smith, PresidentPCG Advisory,
Inc.ksmith@pcgadvisory.comwww.pcgadvisory.com
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